Only a Few States Require That Federal S Corporations Make

question 103

True/False

Only a few states require that Federal S corporations make a separate state-level election of the flow-through status.

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Definitions:

Indirect Method

A financial reporting technique used in cash flow statements to adjust net income for changes in non-cash accounts to identify the actual cash inflow or outflow from operating activities.

Cash Dividends

Distributions of a corporation's earnings to shareholders in the form of cash.

Statement of Cash Flows

A financial report that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking down the analysis to operating, investing, and financing activities.

Operating Activities

Activities directly related to the primary operations of a business, including production, sales, and distribution, which are reflected in its cash flow.