Edith Is the Only Shareholder and Director of Edie Inc

question 47

True/False

Edith is the only shareholder and director of Edie Inc.,a corporation incorporated by Edie two years ago.Edie is also the president of Edie Inc.Edie Inc.has no employees and no assets.Edie will be personally liable to creditors of Edie Inc.

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Definitions:

End-of-period Spreadsheet

A tool used for adjusting and closing entries and for preparing financial statements at the end of an accounting period.

Adjusting Entries

Entries made in accounting to update the records for any incomes and expenses that have been incurred but not yet recorded.

Financial Statements

Structured reports detailing the financial performance, position, and cash flows of an organization, typically including the balance sheet, income statement, and statement of cash flows.

Accounting Cycle

The series of steps followed by an entity to track and manage its financial transactions, from the initial transaction recording to the final financial statement preparation and closing entries.