Which of the Following Statements Is Correct

question 114

Multiple Choice

Which of the following statements is correct?

• A) An S corporation has a greater opportunity to raise capital than does an C corporation.
• B) A general partnership has a greater opportunity to raise capital than does a limited partnership.
• C) A partnership has a greater opportunity to raise capital than does a sole proprietorship.
• D) Only a. and b. are correct.
• E) a., b., and c. are correct.

---

Definitions:

Fiscal Year

A one-year period that companies and governments use for financial reporting and budgeting, different from the calendar year.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts to prepare the books for the next period.

Adjusting Entries

Journal entries made in accounting to update the records for expenses and revenues that have accrued but not yet been recorded.

Unadjusted Trial Balance

A listing of all the accounts and their balances from the ledger, before any adjusting entries are made for preparing financial statements.