A Business Organized as a Corporation

question 30

Multiple Choice

A business organized as a corporation

• A)is not a separate legal entity in most states.
• B)requires that shareholders be personally liable for the debts of the business.
• C)is owned by its shareholders.
• D)terminates when one of its original shareholders dies.

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Definitions:

Inventory Costing Methods

Refer to the approaches used by companies to assign costs to their inventory items and determine the cost of goods sold.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

FIFO

Stands for "First-In, First-Out," an inventory valuation method where the first items placed in inventory are the first sold.

Merchandise Sold

Merchandise sold refers to the completed sales or the process of selling goods that are part of a company's inventory.