An advantage of S corporations over C corporations is they avoid double taxation. Explain how this works
What will be an ideal response?
In a C corporation, profits are taxed through corporate tax files. Next, the profits may be distributed to the shareholders, who must include this income on their personal tax reports; thus the profits are taxed twice. Because all profits in an S corporation flow through directly to the owners, taxation occurs only once, on the owners' personal tax filings.
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A(n) ________ question has a finite number of responses
A) closed B) open C) logical D) key
In which one of the following cases would an auditor most likely issue a qualified opinion?
a. There is a highly material, and very pervasive departure from SFAS No. 141 and No. 142. b. There is a change in accounting principles promulgated by the FASB. c. There is an immaterial dollar misstatement on the financial statements. d. There is one material departure from GAAP that is affects only two accounts.