Which of the following will render a corporation ineligible for S corporation status?
I.The corporation has 125 stockholders.II.One of the stockholders is another corporation.?
A. Only statement I is correct.
B. Only statement II is correct.
C. Both statements are correct.
D. Neither statement is correct.
Answer: C
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Indicate whether the statement is true or false
On August 31, 2018, Allright Services received $3,500 in advance of performing the service. Which journal entry is needed to record the receipt of cash?
A) Debit Unearned Revenue $3,500, and credit Cash $3,500. B) Debit Cash $3,500, and credit Service Revenue $3,500. C) Debit Unearned Revenue $3,500, and credit Service Revenue $3,500. D) Debit Cash $3,500, and credit Unearned Revenue $3,500.
Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $260,000, $350,000, and $400,000, respectively, for September, October, and November. The company expects to sell 30% of its merchandise for cash. Of sales on account, 80% are expected to be collected in the month of the sale, 20% in the month following the sale,
and the remainder in the following month. The cash collections in October from accounts receivable are: A) $232,400 B) $240,000 C) $210,000 D) $337,400
Recognizing an expense may be accompanied by which of the following?
A. A decrease in liabilities B. A decrease in revenue C. An increase in assets D. An increase in liabilities