Which of the Following Factors Led to Significant Changes in Accounting

question 42

Multiple Choice

Which of the following factors led to significant changes in accounting practices?

• A)The Great Depression of 1929
• B)The election of Franklin D. Roosevelt to the presidency in 1932
• C)The enactment of the New Deal legislation
• D)All of the above

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Definitions:

Partnerships

A business organization in which two or more individuals own and operate the business together, sharing in profits and liabilities.

Corporations

Legal entities that are separate from their owners, with the ability to own property, incur liabilities, and sell stock.

Corporation

A business firm that is a legal person. Its chief advantage is that each owner’s liability is limited to the amount of money he or she invested in the company.

Stockholders

Individuals or entities that own shares in a corporation, possessing ownership interests and rights to dividends.