Which of the Following Entities Directly Bear the Burden of Income

question 62

Multiple Choice

Which of the following entities directly bear the burden of income taxes?
I.Limited Liability Company
II.Corporations
III.Partnerships
​

• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Statements I and II are correct.
• D)Statements I, II, and III are correct.

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Definitions:

Consignor

The manufacturer in a consigned inventory arrangement.

Consignment

A business arrangement where goods are left in the possession of another party to sell, but the owner retains ownership until the goods are sold.

Days' Sales

Refers to the ratio that indicates how many days worth of sales a company has in inventory, providing insight into inventory management efficiency.

Inventory

An accounting term for goods and materials that a business holds for the ultimate goal of resale or repair.