Normally It May Be Unnecessary to Examine Supporting Documentation for Each

question 37

Multiple Choice

Normally it may be unnecessary to examine supporting documentation for each addition to property, plant, and equipment, but it would be customary to verify:

• A)all large transactions.
• B)all unusual transactions.
• C)a representative sample of typical additions.
• D)all three of the above.

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Definitions:

RMBCA

The Revised Model Business Corporation Act, which serves as a guide for states in drafting their corporation statutes.

Organizational Meeting

An organizational meeting is the initial meeting held by the incorporators or initial directors of a corporation to complete the formation of the business and to adopt bylaws.

Corporate Veil

A legal concept that separates the identity of a corporation from its shareholders, protecting them from being personally liable for the company’s debts and obligations.

Closely Held Corporations

Companies whose shares are owned by a small group of individuals or families, often with restricted stock sales.