An S corporation recognizes gain or loss if it distributes property other than money to its shareholders.
Answer the following statement true (T) or false (F)
False
An S corporation recognizes gain but not loss on distributed property.
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Alphabet Company, which uses the periodic inventory method, purchases different letters for resale. Alphabet had no beginning inventory. It purchased A thru G in January at $9.00 per letter. In February, it purchased H thru L at $11.00 per letter. It purchased M thru R in March at $12.00 per letter. It sold A, D, E, H, J and N in October. There were no additional purchases or sales during the remainder of the year.If Alphabet Company uses the LIFO method, what is the cost of its ending inventory?
A. $54.00 B. $118.00 C. $72.00 D. $151.00
When there are material differences between the results of using the straight-line method and using the effective interest method of amortization, the effective interest method should be used
Indicate whether the statement is true or false
When a person receives a mail questionnaire and places it in the wastebasket, they are contributing to:
a. sampling error b. response error c. nonresponse error d. nonsystematic error e. nonsampling error
Which of the following best describes a balance sheet?
A) Reports cash receipts and cash disbursements for a specific accounting period B) Reports investment activities for a specified accounting period C) Reports revenues and expenses for a specific accounting period D) Reports the amount and composition of assets and liabilities at a specified point in time