Who Do the Shareholders in a Corporation Elect to Oversee

question 68

Multiple Choice

Who do the shareholders in a corporation elect to oversee the operation of the company and ensure that their interests are protected?

• A) senior staff
• B) board of proprietors
• C) audit committee
• D) board of directors

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Definitions:

Journal Entries

Journal entries are the records of financial transactions in the accounting books, marking the initial step in the accounting cycle, detailing debits and credits.

Adjusted Trial Balance

An adjusted trial balance is a listing of all company accounts that will appear on the financial statements after year-end adjusting journal entries have been made.

Closing Entries

Journal entries made at the end of an accounting period to transfer balances from temporary accounts to permanent accounts, finalizing the books for the period.

Periodic Inventory System

An inventory accounting system where goods are physically counted at specific intervals to determine the cost of goods sold and ending inventory levels.