A Per-Day,per-Share Allocation of Flow-Through S Corporation Items Must Be

question 107

True/False

A per-day,per-share allocation of flow-through S corporation items must be used,unless the shareholder disposes of the entire interest in the entity.

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Definitions:

Current Liabilities

A company's debts or obligations that are due within one year.

Long-Term Liabilities

These are obligations or debts that are due to be paid out beyond one year in the future.

Current Liability

A liability that must be paid off within one year or the standard operating cycle of the company, whichever period is greater.

One Year

A period of twelve consecutive months used as a standard measure of time for accounting, budgeting, and financial reporting.