The Organizations in Which the Ownership and Control of Operations

question 14

Multiple Choice

The organizations in which the ownership and control of operations are vested in the policyholders are known as:

• A) Private entities
• B) Public entities
• C) Reciprocal entities
• D) Mutual entities

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Definitions:

Cash

Refers to money in the form of coins or banknotes, especially that possessed by a person or business for transactions.

Accounts Payable

Accounts payable is a liability account that records amounts a company owes to suppliers or creditors for goods and services received but not yet paid for.

Utilities Expense

The cost incurred from the consumption of utility services such as electricity, water, and gas in the business operations.

Income Summary Account

An account used in closing entries to gather all income and expense items, facilitating the transfer of their net balance to retained earnings.