Which of the Following Statements Is Correct

question 36

Multiple Choice

Which of the following statements is correct?

• A) The corporate bylaws are the set of rules drawn up by the state to enable managers to run the firm in accordance with state laws.
• B) Procedures for electing corporate directors are contained in bylaws.
• C) Procedures that govern changes in the bylaws of the corporation are contained in the corporate charter.
• D) Although most companies design a charter, only the bylaws are legally required to be filed with the secretary of state in order for a corporation to be in official existence.
• E) The declaration of the activities that the firm will pursue and the number of directors are included in the corporate charter.

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Definitions:

Recording Error

A mistake made during the process of entering financial transactions into the accounting records.

Bank Service Charge

Fees charged by banks for account maintenance, transactions, and other services provided to customers, often listed in the account statement.

Outstanding Checks

Checks that have been written and recorded in the payer’s ledger but have not yet been cashed or cleared by the bank.

Another Company's Deposit

This refers to funds deposited by one company into the bank account of a different company, often for payment of goods, services, or a joint venture.