Identify Which of the Following Statements Is False

question 53

Multiple Choice

Identify which of the following statements is false.

• A)Askew Corporation has ten unrelated shareholders, each of whom owns 10% of the outstanding stock. This corporation is a personal holding company.
• B)Stock owned by an individual, in addition to stock attributed from her spouse, parents, children, and siblings, are all counted towards whether or not the personal holding company stock ownership test has been met.
• C)S corporations and tax-exempt organizations are excluded from the personal holding company (PHC)definition.
• D)A person who holds an option to acquire stock is considered to own the stock for purposes of the PHC stock requirements.

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Definitions:

Permanent Accounts

Accounts that carry their balances over into the next accounting period, such as assets, liabilities, and equity accounts.

End-of-period Spreadsheet

A tool used in accounting to compile all financial information before closing the books at the end of a reporting period.

Spreadsheet Heading

The title section at the top of a spreadsheet document that typically contains the name of the spreadsheet, columns, rows, or specific data identifiers.

Adjusted Trial Balance

A statement showing all balances of ledger accounts after adjustments, used to prepare financial statements.