All of the Following Are Requirements to Qualify as an S

question 56

Multiple Choice

All of the following are requirements to qualify as an S corporation with the exception of

• A)the corporation must be a domestic corporation.
• B)the corporation may issue only one class of stock (disregarding voting rights).
• C)the corporation may not have more than 100 shareholders.
• D)the corporation shareholders may consist of only individuals,estates,trusts,and partnerships.

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Definitions:

Beginning Balance

The amount of money or value available in an account at the start of a new financial period.

Ending Balance

The amount of money or value in an account at the end of a financial period.

Cash Dividend

A payment made by a company out of its profits to its shareholders, usually in the form of cash.

Bonds Payable

Long-term liabilities represented by bonds that a company has issued, which it is obligated to pay back at a future date along with interest payments.