A Promoter Is a Person Who Takes the Preliminary Steps

question 56

True/False

A promoter is a person who takes the preliminary steps to organize a corporation.

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Definitions:

Direct Write-off Method

An accounting approach where uncollectable debts are directly written off against income at the time they are deemed non-recoverable.

Percentage of Sales Method

A financial forecasting model that bases future sales, expenses, and other financial elements as a percentage of sales revenue.

Adjusting Entries

Journal entries made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Estimated Amount

A projection or approximation of a financial figure often used in budgeting or forecasting.