A C Corporation That Does Not Have a Natural Business

question 15

True/False

A C corporation that does not have a natural business year must use a calendar year as its tax year.

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Definitions:

Salary Expense

This is the total amount paid to employees for services rendered during a specific period, typically reflecting wages or salaries before deductions.

Normal Credit Balance

The typical balance on the credit side of an account, as is the case for liabilities, equity, and revenue accounts.

Liabilities

Financial obligations or debts a company owes to others, which must be settled in the future by transfer of assets, provision of services, or other forms of economic benefit.

Capital

Refers to financial assets or resources that individuals, companies, or governments use to fund their operations and invest in their own growth.