A Chart of Accounts for a Business Firm

question 57

Multiple Choice

A chart of accounts for a business firm

• A) is a graph.
• B) indicates the amount of profit or loss for the period.
• C) lists the accounts and account numbers that identify their location in the ledger.
• D) shows the balance of each account in the general ledger.

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Definitions:

Nonprofit Corporation

A legal entity organized and operated for a collective, public or social benefit, rather than to generate profit for owners or investors.

Business Judgment Rule

A legal principle that shields corporate executives from liability for decisions made in good faith and with the belief that they were in the best interest of the company.

Fiduciary Duty

An obligation to act in the best interest of another party, such as the duty a trustee has to the beneficiaries of a trust.

Secretary Of State

A high-ranking official responsible for foreign affairs and administrative tasks within a government.