Identify Which of the Following Statements Is True

question 95

Multiple Choice

Identify which of the following statements is true.

• A)The estate tax on interests in certain closely held businesses may be paid in installments over a 15-year period if elected.
• B)An executor may elect to postpone payment of the estate tax attributable to a remainder or reversionary interest until six months after the interests of the other person(s)terminate.
• C)A corporation with 25 owners can be classified as a closely held business if the decedent's gross estate holds 10% of the stock.
• D)All of the above are false.

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Definitions:

Cash Receipts

A record of all money coming into a business, indicating the company's inflow of cash from its various activities.

Sales Clerk

An employee typically found in a retail environment responsible for assisting customers, processing transactions, and organizing products.

Accounting Controls

Processes and procedures implemented by a company to ensure the accuracy and integrity of its financial statements and to prevent fraud.

Internal Control Measures

Procedures and policies implemented by a corporation to ensure integrity of financial and accounting information, promote accountability, and prevent fraud.