An Unincorporated Association (UA) Possess All of the Following Characteristics

question 41

Multiple Choice

An unincorporated association (UA) possess all of the following characteristics, except: _______.

• A) a UA cannot sue in its own name.
• B) a UA cannot be sued in its own name.
• C) a UA does not have any legal existence apart from the members who compose it.
• D) a UA requires legal filings with a public authority.

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Definitions:

Accounting Cycle

A sequence of steps undertaken in a specific order by businesses to handle their financial transactions from their inception to their inclusion in the financial statements.

Recording Journal Entries

The process of documenting all financial transactions of a business in the double-entry accounting system through debits and credits.

Posting

The act of recording financial transactions in the appropriate ledger accounts as part of the accounting process.

Analyzing Business Transactions

The process of reviewing, categorizing, and interpreting the financial activities within a business to understand their impact on the financial statements.