A Business That Requires a New Agreement Whenever an Owner

question 32

Multiple Choice

A business that requires a new agreement whenever an owner leaves or a new owner arrives is a

• A) firm.
• B) corporation.
• C) partnership.
• D) foundation.
• E) proprietorship.

---

Definitions:

Balance Sheet Accounts

Accounts appearing on the balance sheet, representing a company's assets, liabilities, and equity at a specific point in time.

Income Statement Accounts

Accounts that reflect income, expenses, gains, and losses, which are used to determine the net income of a business.

Deferred Revenue

Income received by a company for products or services yet to be delivered or completed, considered a liability until the revenue is earned.

Unearned Rent

Income received by a property owner for which the services (use of property) have not yet been provided.