All of the Following Are Characteristics of a Corporation EXCEPT

question 6

Multiple Choice

All of the following are characteristics of a corporation EXCEPT:

• A) it is able to be sued and to sue.
• B) it is usually managed by its shareholders.
• C) it has perpetual existence.
• D) it is a legal entity of its own.

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Definitions:

Cash Flow Statement

A financial document summarizing the total cash received by a company from its operational activities and external investments, alongside all expenditures on operations and investments within a specific timeframe.

Equipment Account

An account on a company's balance sheet that reports the value of the company's equipment used in operations, less any accumulated depreciation.

Posting

The process of recording financial transactions in the ledger of a company as part of the accounting cycle.

Trial Balance

A trial balance is a bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal.