Match the Term with the Proper Response

question 116

Multiple Choice

Match the term with the proper response. There may be more than one responses for each term.

-Built-in gains tax

• A) Gross receipts from royalties, passive rents, dividends, interest, etc.
• B) Penalty tax to stop an S corporation from avoiding the corporate tax on disposition of appreciated property.
• C) Cumulative total of undistributed non-separately and separately stated items.
• D) Tax-free distribution.
• E) Taxed as dividend income.

Analyze and interpret changes in balance sheet accounts and their impact on cash flow.

Compute cash received from customers using net sales and changes in related accounts.

Calculate cash paid to suppliers and employees by adjusting cost of goods sold and operating expenses to a cash basis.

Assess the effect of changes in balance sheet accounts on cash provided by (used in) operating activities.

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing owners' claims on the company's resources.

Treasury Stock

Shares initially released to the public and then bought back by the corporation that issued them, diminishing the overall supply of shares on the market.

Paid-in Capital

The amount of money that a company has received from shareholders in exchange for shares of stock, above the par value of the shares.

Separate Legal Entity

An entity, such as a corporation or limited liability company, recognized by law as having rights and obligations distinct from those of its members or owners.