For Which Type of Entity Does the Entity Not Pay

question 72

Multiple Choice

For which type of entity does the entity not pay compensation to an owner who is working for the entity?

• A)S corporation.
• B)C corporation.
• C)Entity taxed as a partnership.
• D)None of the choices are correct.

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Definitions:

Accounting

The systematic process of recording, measuring, and communicating financial information about economic entities.

Recording

The act of documenting financial transactions in the books of accounts as part of the accounting process.

Transactions

Financial events that affect the assets, liabilities, or equity of a company, recorded in its accounting system.

Accounting

The systematic process of recording, measuring, and communicating information about financial transactions.