Jake Is the Sole Shareholder of an S Corporation That

question 16

True/False

Jake is the sole shareholder of an S corporation that earned $60,000 in 2017. The corporation was short on cash and therefore distributed only $15,000 to Jake in 2017. Jake is required to recognize $60,000 of income from the S corporation in 2017.

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Definitions:

Statement Of Cash Flows

A financial document that shows how changes in balance sheet accounts and income affect cash and cash equivalents.

Net Working Capital

The difference between a company's current assets and its current liabilities, indicating the liquid assets available for running its operations.

Discontinued Operations

Parts of a company's core business or units that have been sold, disposed of, or ceased operations, which are reported separately in financial statements.

Interim Report

A financial statement that reports a company's financial performance for a period shorter than a fiscal year, often quarterly.