Which Item Does Not Appear on Schedule K of Form

question 25

Multiple Choice

Which item does not appear on Schedule K of Form 1120S?

• A) Intangible drilling costs.
• B) Foreign loss.
• C) Utilities expense.
• D) Recovery of a tax benefit.
• E) All of the above items appear on Schedule K.

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Definitions:

Sales Returns

Goods returned by the buyer to the seller for a refund or credit, often due to issues like defects or dissatisfaction.

Adjusting Entries

Journal entries made in accounting at the end of a reporting period to allocate income and expenditures to the period in which they actually occurred.

Periodic Inventory

A periodic inventory system is an accounting method where inventory levels and cost of goods sold are updated in the ledger at the end of an accounting period, rather than tracking each sale or purchase individually.

Perpetual Inventory

A method used in inventory accounting that immediately notes the sale or acquisition of inventory through computerized point-of-sale systems and enterprise asset management software.