Identify Which of the Following Statements Is False

question 66

Multiple Choice

Identify which of the following statements is false.

• A)A solely owned corporation is a sole proprietorship.
• B)A sole proprietorship is a separate taxable entity.
• C)A sole proprietor is considered to be an employee of the business.
• D)All of the above are false.

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Definitions:

Perpetual Inventory System

An accounting method that continuously updates the quantity and cost of inventory after each purchase or sale, offering real-time inventory levels.

FOB Shipping Point

A term indicating that the buyer assumes responsibility and ownership of goods the moment they are shipped from the seller's location.

Credit Memo

A document issued to a buyer, reducing the amount they owe due to a return or rebate.

Chart of Accounts

A systematic list of all accounts used by an organization, essential for organizing financial information and preparing financial statements.