An S Election Is Made on the Shareholder's Form 2553

question 106

True/False

An S election is made on the shareholder's Form 2553.

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Definitions:

Blanket Lien

A type of lien that gives the creditor the rights to seize nearly all types of assets and property of the debtor in the event of default.

Trade Credit

A type of commercial financing where a buyer is allowed to purchase goods or services and pay the supplier at a later scheduled date.

Net Period

The time period within which a net payment is due after any discounts are applied.

Compensating Balance

A minimum balance that must be maintained in a bank account, usually as a condition for obtaining a loan or line of credit.