Certain Close Corporations Are Permitted to Elect a Special Corporate

question 34

Multiple Choice

Certain close corporations are permitted to elect a special corporate tax status under Subchapter S of the Internal Revenue Code. These corporations are called which of the following?

• A) Tax-free corporations
• B) Pass through corporations
• C) S corporations
• D) Special corporations

Understand the remedies available under contract law, including equitable remedies.

Analyze the legal rights of parties in a contract when an assignment of rights or delegation of duties occurs.

Interpret contractual obligations and the impact of failure to perform as agreed.

Evaluate the importance of timely and proper notification of contractual changes to all parties involved.

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Definitions:

Gross Method

The gross method in accounting is a way of recording purchases at the full invoice price without deduction of any cash discounts.

Accounts Payable

A current liability account on the balance sheet representing amounts owed by a company to suppliers or creditors for goods and services purchased on credit.

Exchange Rate

The value of one currency for the purpose of conversion to another, dictating how much one currency is worth in terms of another.

Journal Entry

A record in the accounting journals that represents a business transaction, detailing debits and credits.