Which of the Following Statements Regarding Business Forms Is True

question 102

Multiple Choice

Which of the following statements regarding business forms is true?

• A)A sole proprietorship is an unincorporated business owned by one person.
• B)All partnerships are owned by two people.
• C)A corporation is not a legal entity.
• D)An LLC (limited liability company)has the same tax treatment as a corporation.

---

Definitions:

Cash Shortages

The situation where the cash on hand is less than the expected amount, often indicating errors or theft.

Accounts Payable

Liabilities of a business that represent amounts owed to creditors for goods and services purchased on credit.

Cash Account

An account that records all transactions involving cash inflows and outflows.

Cash Payments

Transactions where payment for goods, services, or obligations is made using physical currency or checks instead of digital means.