Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Multiple Choice

Which of the following is a requirement to be classified as an S corporation under U.S. tax law?

The corporation must be publicly traded.

The corporation must have no more than 100 shareholders.

The corporation must issue preferred stock.

The corporation must have at least one foreign shareholder.

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Verified step by step guidance

Understand the concept of an S corporation: An S corporation is a type of corporation that meets specific Internal Revenue Service (IRS) requirements, allowing it to pass income, losses, deductions, and credits directly to shareholders for federal tax purposes.

Review the eligibility criteria for an S corporation under U.S. tax law: Key requirements include having no more than 100 shareholders, all shareholders must be U.S. citizens or residents, and the corporation can only issue one class of stock (no preferred stock).

Eliminate incorrect options: Publicly traded corporations cannot qualify as S corporations, and S corporations cannot have foreign shareholders or issue preferred stock.

Focus on the correct requirement: The corporation must have no more than 100 shareholders, which is explicitly stated in the IRS guidelines for S corporations.

Summarize the reasoning: Based on the IRS rules, the correct answer is that the corporation must have no more than 100 shareholders, as this is a fundamental requirement for S corporation classification.