Which of the Following Classes of Corporations Has the Least

question 23

Multiple Choice

Which of the following classes of corporations has the least business tax burden?

• A) Oil companies
• B) Banking companies
• C) Insurance companies
• D) Public utility companies

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Definitions:

Voucher

A document or record acting as evidence for a transaction, or as an authorization for payment.

Net Method

An accounting technique where discounts for early payment are calculated and recorded as lower sales prices at the time of sale, in anticipation that discounts will be taken.

Periodic Method

An accounting method that records inventory purchases and sales periodically, typically at the end of an accounting period, instead of continuously.

Journal Entries

The method by which transactions are recorded in the general ledger in the form of debits and credits according to accounting rules.