As a Separately Stated Item, the Long-Term Capital Losses of an S

question 163

True/False

As a separately stated item, the long-term capital losses of an S corporation will pass through to its shareholders as short-term capital losses.

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Definitions:

Petty Cash

A small amount of cash on hand used for covering minor expenses in a business.

Current Asset

A current asset is an asset that is expected to be converted into cash, sold, or consumed within one year or the operating cycle, whichever is longer.

Bank Checking Account

A bank account that allows the holder to deposit and withdraw money and write checks.

Postdated Check

A check written with a future date, preventing it from being cashed or deposited until that date.