An LLC Is Different from a Corporation in That an LLC

question 190

Multiple Choice

An LLC is different from a corporation in that an LLC has:

• A)a "distribution of net income" section in its financial statements.
• B)Retained Earnings in its financial statements.
• C)Income Tax Expense in its financial statements.
• D)Dividends in its financial statements.

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Definitions:

Face Value

The nominal value printed on a financial instrument like a bond or a stock certificate, representing its legal value.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, used in discounting and investment appraisal.

Fair Value

Fair value refers to the estimated market value of an asset or liability, based on current market conditions and comparable transactions, used in financial reporting.

Capital Lease

A lease considered to have the economic characteristics of asset ownership for accounting purposes.