Once a Corporation Has Elected a Taxable Year, It Can

question 74

Multiple Choice

Once a corporation has elected a taxable year, it can change the taxable year without IRS permission if

• A)the resulting short period has a net operating loss of $100,000 that the corporation wants to carry forward.
• B)the corporation changed its taxable year seven years ago.
• C)the corporation is not an S corporation.
• D)a corporation can change its taxable year without IRS permission in all of the above situations.

Recognize cash flow reporting requirements for specific transactions under current GAAP.

Analyze the significance of discrepancies between net income and net cash flows from operating activities.

Identify strategies for managing and manipulating cash flow reporting.

Understand the treatment of non-cash financing and investing activities in the cash flow statement.

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Definitions:

Quality

The standard of something measured against other similar entities; it denotes how good or bad an object, product, or service is.

Supply And Demand

A fundamental economic model explaining the interaction between the quantity of goods supplied by producers and the quantity demanded by consumers.

Rent Control

Government policies or regulations that limit the amount landlords can charge for renting out a property, often to make housing more affordable.

Price Floor

A government-imposed minimum price that can be charged for a good or service, usually set above the market equilibrium price to aid producers.