In A(n) ________, Owners Have Limited Liability with Regard to the Business

question 43

Multiple Choice

In a(n) ________, owners have limited liability with regard to the business. They are not personally liable for the malpractice of other owners.

• A) limited partnership
• B) S-corporation
• C) partnership
• D) limited liability partnership

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Definitions:

Contra Asset Account

An account on the company's balance sheet that reduces the total amount of another account, typically used for accumulated depreciation.

Interim Periods

Interim Periods are shorter time frames within a fiscal year, during which a company reports its financial performance, often quarterly or semi-annually.

Prepaid Expense

Expenses paid in advance and recorded as assets until they are used or consumed.

Periodicity Assumption

An accounting principle that divides the ongoing activities of a business into set periods of time, such as months or years, to produce financial statements for those periods.