If Any Entity Electing S Status Is Currently a C

question 30

Short Answer

If any entity electing S status is currently a C corporation, NOL carryovers from prior years generally be used in an S corporation year.

Distinguish between investment centers, profit centers, and cost centers.

Calculate and interpret residual income.

Understand the concept of transfer pricing and its approaches.

Understand the use of the balanced scorecard in measuring financial and nonfinancial performance.

---

Definitions:

Trading Portfolio

A collection of financial assets held by an individual or institution primarily for the purpose of short-term trading and profit.

Fair Value

Fair value is an estimation of the price at which an asset or liability could be bought or sold in an orderly transaction between market participants at the measurement date.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the appropriate period, ensuring that revenues and expenses are matched.

Short-Term Investments

Investments that are expected to be converted into cash, sold, or consumed within a year or within one business cycle, whichever is longer.