Answer the following statements true (T) or false (F)

1. The S corporation rules were enacted to allow small corporations to enjoy the nontax advantages of the corporate form of business without being subject to the tax disadvantage of double taxation.
2. Up to six generations of a family are considered as one shareholder for purposes of the 100-shareholder limit.
3. Corporations and partnerships can be S corporation shareholders.
4. A testamentary trust can be an S shareholder for two years, beginning on the date the stock transfers to the trust.


1. TRUE
2. TRUE
3. FALSE
4. TRUE

Business

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Answer the following statement true (T) or false (F)

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Managerial accounting information includes all of the following except:

A. financial statements prepared in accordance with generally accepted accounting principles. B. budgets. C. cost reports. D. performance evaluations, for example budget-to-actual reports.

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Indicate whether the statement is true or false

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Answer the following statement true (T) or false (F)

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