Start-Up Corporation Substantially Complies with All Conditions Prece?dent to Incorpo?ration

question 36

Multiple Choice

Start-Up Corporation substantially complies with all conditions prece?dent to incorpo?ration.Start-Up has

• A)corporate existence by estoppel.
• B)de facto existence.
• C)de jure existence.
• D)ultra vires existence.

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Definitions:

Bad Debt Expense

An expense recognized when a company determines that receivables cannot be collected.

Allowance for Doubtful Accounts

A contra-asset account that reduces total receivables to reflect the estimated uncollectible amounts.

Specific Customer

A particular or individual client to whom products or services are sold or provided.

Allowance Method

An accounting technique that estimates and deducts accounts receivable that may not be collectible, to more accurately represent a company's financial position.