For Accounting Purposes, the Business Entity Should Be Considered Separate

question 100

Multiple Choice

For accounting purposes, the business entity should be considered separate from its owners if the business is organized as a:

• A)proprietorship.
• B)corporation.
• C)partnership.
• D)any of the above.

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Definitions:

Inventory Value

Inventory value is the total cost or market value of all the goods held by a company that are ready or will be ready for sale.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor.

Current Liabilities

Debts or obligations that a company is expected to pay within one year, including accounts payable, short-term loans, and accrued expenses.

Accounts Payable

Liabilities of a business that are due to suppliers for goods and services bought on credit, to be paid off within a short period.