Which Type of Businesses Earns the Majority of Profits in the United

question 249

Multiple Choice

Which type of businesses earns the majority of profits in the United States?

• A)corporations
• B)partnerships
• C)sole proprietorships
• D)none of these

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Definitions:

Income Statement

A financial statement showing the revenue, expenses, and profits or losses of a business over a particular period.

Freight-In

Freight-In costs are the shipping charges for receiving goods from suppliers, considered part of the inventory cost and included in the cost of goods sold when the inventory is sold.

Purchases Account

A ledger account used to record the amounts spent on acquiring inventory for resale or raw materials for production, excluding any direct labor or overhead costs.

Cost Of Goods Purchased

The cost of goods purchased is the total expense a company incurs to buy the goods that it sells to customers, excluding costs associated with production or manufacturing.