A Corporation's Board of Directors

question 8

Multiple Choice

A corporation's board of directors

• A)hire the managers of the corporation.
• B)control the day-to-day activities of the corporation.
• C)are personally liable for the debts of the corporation.
• D)are the sole owners of the corporation.

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Definitions:

Materiality Constraint

An accounting principle that allows for the exclusion of insignificant financial information from reports because it would not impact decision-making.

Accounting Information

Data related to financial transactions and status of a business, used for analysis, decision making, and financial reporting.

Ending Retained Earnings

The amount of net income left over for the business after it has paid out dividends to its shareholders, captured at the close of an accounting period.

Revenues

The total income generated by a business from its normal business operations, including sales of goods and services, before any expenses are deducted.