From an Accounting Viewpoint, When Is a Business Considered an Entity

question 72

Multiple Choice

From an accounting viewpoint, when is a business considered an entity separate from its owner(s) ?

• A) Only when organized as a sole proprietorship.
• B) Only when organized as a partnership.
• C) Only when organized as a corporation.
• D) In each of the above situations, the business is an accounting entity separate from the activities of the owner(s).

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Definitions:

Deposition

A sworn, out-of-court testimony of a witness that is used for gathering information and evidence in legal proceedings.

Oath

A solemn promise, often invoking a divine witness, regarding one's future action or behavior.

CEO

Chief Executive Officer, the highest-ranking executive in a company, responsible for major corporate decisions.

Cross-Examination

The questioning of an opposing witness during a trial.