An S Corporation Can Use a Noncalendar Year-End If It

question 57

True/False

An S corporation can use a noncalendar year-end if it can establish a business purpose for an alternative year-end.

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Definitions:

Merchandise Returned

Items sent back to the seller by the buyer due to defects, dissatisfaction, or other reasons, often part of a refunds or exchanges process.

FOB Destination

A shipping term indicating that the seller owns the goods in transit and is responsible for freight charges and any damage until the goods are delivered to the buyer’s location.

Freight Costs

Expenses associated with transporting goods between the vendor and the buyer, which may be borne by either party.

Sales Discount

A reduction from the usual cost of a product or service offered to customers to encourage prompt payment or increase sales.