A Corporation Is an Entity Separate from Its

question 16

Multiple Choice

A corporation is an entity separate from its:

• A)members and shareholders but not its directors.
• B)members but not its shareholders or directors.
• C)members,shareholders and directors.
• D)shareholders but not its members or directors.

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Definitions:

Chart of Accounts

An organized list of all the account titles and numbers used in the ledger of a company to classify transactions.

Transactions

Business activities or events that have a financial impact on the finances of a company, recorded in the accounting records.

T-Accounts

A graphic representation of financial transactions in the general ledger of a double-entry bookkeeping system where the left (debit) and right (credit) sides reflect different types of transactions.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that should match.