Which One of the Following Statements Is Correct Concerning Corporations

question 37

Multiple Choice

Which one of the following statements is correct concerning corporations?

• A)The largest firms are usually corporations.
• B)The majority of firms are corporations.
• C)The shareholders are usually the managers of a corporation.
• D)The ability of a corporation to raise capital is quite limited.
• E)The income of a corporation is taxed as personal income of the shareholders.

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Definitions:

Residual Value

The estimated value of an asset at the end of its useful life.

Double Diminishing-Balance

A method of accelerated depreciation that computes depreciation at double the rate of the straight-line method.

Carrying Amount

The book value of assets or liabilities as recorded in the financial statements, after accounting for depreciation, amortization, or impairment.

Residual Value

The estimated remaining value of an asset at the end of its useful life.