Which Statement Is Incorrect

question 70

Multiple Choice

Which statement is incorrect?

• A) S corporations are treated as corporations under state law.
• B) S corporations are treated as partnerships for Federal income tax purposes.
• C) Distributions of appreciated property are taxable to the S corporation.
• D) All of these.

Know how to select and manipulate multiple controls simultaneously in Form Design view.

Learn the adjustments and settings for multicolumn reports.

Identify the properties relevant to forms and reports customization.

Learn to use the Record Source property for data linking in reports.

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Definitions:

Stock Split

A corporate action to increase the number of outstanding shares while reducing the price per share, keeping the overall market capitalization the same.

Par Value

The face value of a bond or stock as specified by its issuer, which does not necessarily correspond to its market value.

Stock Dividend

A dividend payment made in the form of additional shares rather than a cash payout, increasing the number of shares held by each shareholder.

Retained Earnings

The portion of net earnings not paid out as dividends, but retained by the company to be reinvested in its core business or to pay debt.