Several Individuals Acquire Assets on Behalf of Skip Corporation on May

question 14

Multiple Choice

Several individuals acquire assets on behalf of Skip Corporation on May 28, purchased assets on June 3 and began business on June 11. They subscribe to shares of stock, file articles of incorporation for Skip, and become shareholders on June 21. The S election must be filed no later than 2 1/2 months after:

• A) May 28.
• B) June 3.
• C) June 11.
• D) June 21.
• E) December 31.

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.

Market Price

The ongoing market value at which one can buy or sell an asset or service.

Times Interest Earned

A financial ratio that measures a company's ability to meet its interest payments based on current earnings.

Balance Sheet

A financial statement that provides a snapshot of a company's financial position at a specific point in time, detailing assets, liabilities, and shareholders' equity.