EZ Hauling Holds Itself Out to Customers as Being a Corporation

question 20

Multiple Choice

EZ Hauling holds itself out to customers as being a corporation but makes no attempt to incorporate. In this circumstance, EZ Hauling is most likely​

• A) ​a corporation by estoppel.
• B) ​a de facto corporation.
• C) ​a de jure corporation.
• D) ​a benefit corporation.

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Definitions:

Interest Expense

Expenses an entity faces for using borrowed money over a specific duration.

Prepaid Interest

Interest that is paid in advance of the period to which it applies, often relating to mortgage or loan agreements.

Worksheet

An informal accounting document used internally to assemble, adjust, and sort various account balances for the preparation of financial statements.

Trial Balance

A bookkeeping report that lists the balances of all ledgers accounts in order to check the mathematical accuracy of the accounts' balances.