Corporations Cannot Be Shareholders in an S Corporation

question 49

True/False

Corporations cannot be shareholders in an S corporation.

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Definitions:

Revenue Account

A financial account that tracks the income generated from a company's business activities, such as sales or services provided.

Credited

A term used in double-entry bookkeeping to indicate a recording in the credit column, often signaling an increase in liabilities or a decrease in assets.

Increased

Describes a rise or growth in value, quantity, or some other measure.

Transaction

This refers to any event or action that changes the financial position or the financial statements of a company.