For Which of the Following Is Aurelia Liable

question 24

Multiple Choice

For which of the following is Aurelia liable?

• A) Her own profits only.
• B) Her profits and those of Johan only.
• C) Her profits, the profits of Johan, and also the profits of Charlie.
• D) Her profits only plus a 10% penalty.
• E) Nothing because she acted legally.

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Definitions:

Financial Statements

Formal records that outline the financial activities and conditions of a business, entity, or individual, including the balance sheet, income statement, and cash flow statement.

Retained Earnings

Funds that are not distributed as dividends but are reserved by the company to reinvest in its business, pay off debt, or save for future use.

Deficit

The amount by which expenses exceed income or liabilities exceed assets.