Inez and Jason Are the Shareholders and Directors of Kleen

question 32

Multiple Choice

Inez and Jason are the shareholders and directors of Kleen Kustodial Corporation. Lily and Moe are Kleen's officers. As in other corporations,the responsibility for the overall management of Kleen rests with

• A)the board of directors.
• B)the officers.
• C)the owners.
• D)the shareholders.

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Definitions:

Capital Fund

A reserve of money that is set aside for long-term investment projects or to cover future expenses and liabilities.

Endowment Fund

A fund established to finance a particular purpose of an organization, where the principal is kept intact while the investment income is available for use.

Deferral Method

An accounting technique used to delay the recognition of expenses or revenues until the related cash is paid or received.

Financial Statements

Written records that convey the business activities and the financial performance of a company. They typically include the balance sheet, income statement, and statement of cash flows.