A Private Corporation Is One That

question 63

Multiple Choice

A private corporation is one that

• A)is owned by only a few people and not traded on the open market.
• B)does not pay taxes on its income.
• C)does not hire employees.
• D)can be purchased on the New York Stock Exchange.
• E)all of the above.

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Definitions:

Depreciation

The accounting method of allocating the cost of a tangible or physical asset over its useful life.

Doubtful Debts

Monetary amounts owed to a company that are considered unlikely to be paid, often set aside as an allowance for doubtful accounts.

Inventory Balance

Indicates the amount or value of inventory on hand at any given point in time, factoring in additions, subtractions, and adjustments.

Raw Material

The basic substance in its natural, modified, or semi-processed state, used as an input to a production process for manufacturing.