Which Form of Business Organization Is the Most Common in the United

question 22

Multiple Choice

Which form of business organization is the most common in the United States?

• A)Sole proprietorship
• B)Partnership
• C)Corporation
• D)Nonprofit organization
• E)S corporation

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Definitions:

Accrued Sales Revenue

Revenue that has been earned but not yet received in cash or recorded by the accounting department.

Adjusting Entries

Financial records entered at the termination of an accounting period, aimed at allocating profits and outlays to the correct period.

Pretax Income

The income earned by a company before deducting taxes, representing the company's profitability after all expenses except taxes.

Accrued Expenses

Liabilities (payables) created when expenses are incurred, but cash will be paid in the future; created at end of period during the adjustment process to reflect the amount of expense incurred that the company will pay in the future.