A Corporation Is Generally Entitled to an Income Tax Deduction

question 49

True/False

A corporation is generally entitled to an income tax deduction for cash dividends paid to shareholders because the shareholders are required to include the dividend in gross income.

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Definitions:

Maturity Date

The date on which a debt instrument becomes due and principal and interest payments must be paid.

Bank Credit Card

A card issued by a bank that allows users to purchase goods or services on credit, subject to repayment terms and possibly interest.

Sales

The exchange of goods or services for money, constituting the revenue of a business.

Pledging Accounts Receivable

The use of accounts receivable as collateral to secure a loan, without transferring the title.