Which of the Following Is NOT One of the Characteristics

question 67

Multiple Choice

Which of the following is NOT one of the characteristics of a constructive dividend?

• A)Payment between a corporation and a shareholder
• B)Original payment treated as deductible by the corporation
• C)Original payment treated as made to the shareholder in some capacity other than as an owner of the corporation
• D)All of the above are common characteristics of constructive dividends.

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Definitions:

Uncollectible Accounts

Receivables that are deemed uncollectible and are written off as a loss due to the inability to collect the funds.

Allowance Account

An account used to offset the gross accounts receivable by the amount estimated to be uncollectible.

Accounts Receivable

Unsettled payments from customers to a business for goods delivered or services carried out.

Note Receivable

A financial asset representing a promise for future receipt of cash, typically arising from sales or loans, evidenced by a written promise to pay.