Match the Term with the Entity to Which It Applies

question 30

Multiple Choice

Match the term with the entity to which it applies.
-Separate entity that never pays income taxes

• A)Sole Proprietorship.
• B)Partnership.
• C)Corporation.
• D)S Corporation.

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Definitions:

Retained Earnings

Retained earnings represent the portion of net earnings not paid out as dividends but retained by the company to be reinvested in its core business or to pay debt.

Income Statement

A financial statement that shows a company's revenues, expenses, and profits or losses over a particular period.

Rent Expense

The cost incurred for leasing a property or equipment used in the operation of a business.

Fees Earned

Income generated from providing services, often used in professional practices like law firms, consulting firms, and architectural firms.