Snow Corporation Began Business on May 1,2014,and Elected to Use

question 106

True/False

Snow Corporation began business on May 1,2014,and elected to use the calendar year for tax purposes.Brown Corporation,a calendar year corporation,sold all of its assets and liquidated as of April 30,2014.Neither Snow Corporation nor Brown Corporation must annualize their income for their 2014 returns.

---

Definitions:

Current Liabilities

Financial obligations a company owes and is due to pay within a year.

Total Current Assets

The sum of all assets expected to be converted into cash within one year.

Accounts Receivable

Money owed to a company by its debtors for goods and services that have been delivered but not yet paid for.

Current Liabilities

Financial obligations or debts of a business that are due to be paid within one year.