Julia Owns and Operates Collectable Dolls Without Creating a Separate

question 61

Multiple Choice

Julia owns and operates Collectable Dolls without creating a separate business organization.She receives all the profits from the doll sales.Collectable Dolls is most likely a

• A)a corporation.
• B)a limited liability company.
• C)a partnership.
• D)a sole proprietorship.

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Definitions:

Financial Statements

Materials outlining a firm's financial health, incorporating its balance sheet, income statement, and cash flow statement.

Adjustment

Modifications made to account balances in order to correct financial statements or to allocate transactions correctly.

Accrual Accounting

An accounting method that recognizes revenue and expenses when they are incurred, not necessarily when cash is exchanged, enhancing the accuracy of financial statements.

Financial Statements

Formal records of the financial activities and position of a business, organization, or person, including balance sheets, income statements, and cash flow statements.