A Private Corporation Is One

question 27

Multiple Choice

A private corporation is one:

• A)that can be bought,sold,or traded by anyone.
• B)that does not pay taxes on its income.
• C)whose stock is not traded in public markets.
• D)whose stock can be purchased on the New York Stock Exchange.
• E)that discloses proprietary information to the public.

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Definitions:

FIFO Method

An accounting method where the first items added to inventory are the first ones to be sold or used.

Equivalent Units

A concept used in cost accounting to express the amount of work done by manufacturers in terms of fully completed units of output.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and constitute a significant portion of the production costs.

Operational Costing

The method of calculating the expenses associated with the day-to-day running of a business, including costs of manufacturing and services.