Which One of the Following Would Not Be Considered an Advantage

question 99

Multiple Choice

Which one of the following would not be considered an advantage of the corporate form of organization?

• A) government regulation
• B) separate legal existence
• C) continuous life
• D) limited liability of stockholders

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Definitions:

Cumulative Effect

The aggregate impact of an accounting change or policy on a company's financial statements over time.

Average Cost

A method for inventory and cost of goods sold valuation, calculated by dividing the total cost by the number of items.

LIFO Method

Last In, First Out method; an inventory valuation technique where the most recently produced items are recorded as sold first.

Prospective Treatment

An approach in accounting where changes are applied to transactions and events from a specific date forward.