The QuickBooks Backup

question 16

True/False

The QuickBooks backup (.qbb) file is used to record transactions.

Identify the corporate alternative minimum tax (AMT) rules and exemption amounts.

Understand the criteria and implications of forming parent-subsidiary groups and consolidated tax filing requirements.

Analyze the impact of shareholder contributions and stock basis adjustments in Subchapter S corporations and corporate formations.

Distinguish between the taxation models of Subchapter S corporations and partnerships.

---

Definitions:

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions paid to shareholders.

Dividends

Payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue, indicating the company's bottom line.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, typically including the balance sheet, income statement, and cash flow statement.