Which Statement Is Incorrect with Respect to the Number-Of-Shareholders Test

question 66

Multiple Choice

Which statement is incorrect with respect to the number-of-shareholders test in filing an S election?

• A) Husband Jaime and wife Maria count as one shareholder.
• B) Grandmother Adela and granddaughter Maria count as one shareholder.
• C) Husband Jaime and the estate of wife Maria count as one shareholder.
• D) Husband Jaime and ex-wife Isabel count as one shareholder.
• E) All of these statements are correct.

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Definitions:

Chart Of Accounts

An organized list of all accounts in a business entity's financial statements, used to classify and record financial transactions.

Debit And Credit

Accounting terms representing increases or decreases in accounts, used to record transactions in the double-entry bookkeeping system.

Trial Balance

A financial statement that checks the balance of all debit and credit entries in a company's accounting ledger to ensure accuracy.

Ledger Accounts

Individual records that provide in detail the transactions associated with a company's assets, liabilities, equity, revenue, and expenses.