Which of the Following Statements Is CORRECT

question 37

Multiple Choice

Which of the following statements is CORRECT?

• A) One of the disadvantages of incorporating your business is that you could become subject to the firm's liabilities in the event of bankruptcy.
• B) Sole proprietorships are subject to more regulations than corporations.
• C) In any partnership, epartner has the same rights, privileges, and liability exposure as eother partner.
• D) Corporations of all types are subject to the corporate income tax.
• E) Sole proprietorships and partnerships generally have a tax advantage over corporations.

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Definitions:

Ledger

A comprehensive collection of a company's accounts where transactions are recorded, typically categorized into assets, liabilities, equity, revenues, and expenses.

Compound Journal Entry

A journal entry that includes multiple debits, credits, or both, affecting more than two accounts.

Accounts

Records of financial transactions pertaining to specific assets, liabilities, equity, revenues, and expenses within an organization.

Compound Entry

A type of journal entry in accounting that involves more than two accounts, with multiple debits, credits, or both.