Match the Following Characteristics with the Form of Business Entity

question 94

Multiple Choice

Match the following characteristics with the form of business entity that best describes it. Each may be used more than once.
-Comprises 70% of business entities in the United States

• A)Proprietorship
• B)Partnership
• C)Corporation
• D)Limited liability company (LLC)

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Definitions:

Fixed Asset Turnover Ratio

A performance metric that measures a company's efficiency in using its fixed assets to generate sales, calculated as net sales divided by the average net fixed assets.

Depreciation Expense

An accounting method that allocates the cost of a tangible asset over its useful life, reflecting its consumption or wear and tear.

U.S. GAAP

Generally Accepted Accounting Principles in the United States, a standard framework of guidelines for financial accounting used in any jurisdiction.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, presenting the financial results of its operations.