A Corporation

question 217

Multiple Choice

A corporation:

• A) Is a legal entity separate and distinct from its owners.
• B) Is regulated by Canada Revenue Agency.
• C) Has shareholders who have unlimited liability for the acts of the corporation.
• D) Can only have two owners.
• E) Is not a legal entity.

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Definitions:

End-Of-Period Spreadsheet

A document used to gather all account balances at the end of an accounting period to prepare financial statements.

Prepaid Insurance

An asset account that represents insurance payments made in advance for coverage extending over future periods.

Unearned Revenue

Funds paid to a company for products or services that are still to be provided or executed.

Income Statement

A financial statement that displays a company's revenues, expenses, and net income over a specific period, demonstrating the financial performance of the business.