The Separation of Ownership and Control Is Normally a Characteristic

question 61

Multiple Choice

The separation of ownership and control is normally a characteristic of:

• A) companies.
• B) partnerships.
• C) sole traders.
• D) partnerships and companies.

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Definitions:

Accrued Expenses

Expenses that have been incurred but not yet paid or recorded in the accounts, representing liabilities for goods or services received.

Incurred

Describes expenses or liabilities that have been realized or consumed in the course of business operations.

Recorded

The process of making an official or formal documentation of a particular data or event in accounting or records.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the appropriate period.