Income Statements for Corporations Are the Same as the Income

question 161

Multiple Choice

Income statements for corporations are the same as the income statements for proprietorships EXCEPT for the reporting of

• A) cost of goods sold.
• B) income taxes.
• C) gross profit.
• D) other revenues and other expenses.

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Definitions:

Meeting

A gathering of individuals or representatives for the purpose of discussing and acting upon matters of common interest.

Incorporators

Individuals who sign the articles of incorporation for a corporation, effectively bringing it into existence under the law.

Corporate Articles

Legal documents filed with a state government to formally establish the existence of a corporation.

Incorporation

The process of legally declaring a corporate entity as separate from its owners.