A Large Proprietary Company Is One That Has

question 52

Multiple Choice

A large proprietary company is one that has:

• A)gross assets of more than $12.5 million at the end of the financial year.
• B)50 or more full-time employees at the end of the financial year.
• C)a gross operating revenue of more than $25 million for the financial year.
• D)any two of the above.

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Definitions:

18-Month Insurance

This term refers to a prepaid insurance policy that covers a period of 18 months, recognized as an asset initially and expensed over the duration of the coverage.

Weekly Payroll

The total sum of all employee earnings paid on a weekly basis.

Supplies on Account

Supplies purchased by a company on credit, for which payment will be made at a later date, increasing accounts payable.

Historical Cost

The original monetary value of an asset or liability, recorded at the time of its acquisition or incurrence.