In Order to Be Eligible for S Status,a Firm Must

question 50

Multiple Choice

In order to be eligible for S status,a firm must

• A) have 100 or fewer shareholders.
• B) be a financial intermediary.
• C) have been incorporated for more than 5 years.
• D) not have more than one line of business.

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Definitions:

Cash Dividend

A payout from the company's profits, determined by the board of directors, given to certain shareholders as cash.

Trading Securities Portfolio

A collection of marketable securities that a business holds for the purpose of reselling them in the short term to profit from market price changes.

Fair Value

An estimate of the price at which an asset or liability could be traded in an orderly transaction between market participants at the measurement date.

Adjusting Entry

An accounting journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate period.