The Liability of the Members of a Limited Liability Company

question 18

True/False

The liability of the members of a limited liability company is limited to the amount of their investments.

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Definitions:

Interest Expense

The sum an entity is liable for as a result of borrowing funds over a particular period.

Unearned Revenues

This reflects money received by a company for goods or services yet to be provided.

Retained Earnings

The portion of net income that is kept within the company rather than distributed to its shareholders as dividends.

Prepaid Rent

Payments made in advance for rent on a property or space that is to be used in the future, recorded as an asset on the balance sheet until the period to which the payment applies passes.