A Manager Offers Sautéed Trout Fillets on the Menu

question 25

Multiple Choice

A manager offers sautéed trout fillets on the menu. If the manager utilizes the ABC inventory system, which item used to produce this menu item would most likely be considered an "A" category item?

• A) Lemon slices
• B) Fresh trout fillets
• C) Fresh garlic cloves
• D) Hungarian paprika

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Definitions:

Subchapter S Corporation

A type of corporation created through an IRS tax election to pass corporate income, losses, deductions, and credits through to shareholders for federal tax purposes.

Schedule K-1

A tax document used to report the income, losses, and dividends of a partnership or S corporation's partners or shareholders.

Separately Stated

Items on a partnership or S corporation tax return that must be reported separately on the owners' personal tax returns.

Taxable Dividend

A dividend paid to shareholders that is subject to income taxation.