In Canada,the Distinguishing Feature of a Corporation Is That

question 1

Multiple Choice

In Canada,the distinguishing feature of a corporation is that

• A) there is no legal difference between the corporation and its owners.
• B) it is a legally defined, artificial being, separate from its owners.
• C) it spreads liability for its corporate obligations to all shareholders.
• D) it provides limited liability only to small shareholders.

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Definitions:

Estimated Warranty Expense

Estimated Warranty Expense is an anticipated cost a company expects to incur related to its product warranties, predicting repairs or replacements it will provide for products sold within a given period.

Average Cost

A method of inventory valuation which calculates the cost of goods sold and ending inventory based on the average cost of all similar items.

Journal Entries

These are records of all the financial transactions of a business, recorded in the chronological order in which they occur.

Units Sold

The total quantity of products or goods a company has sold during a particular period.