Every Corporation Is Recognized and Treated Under the Law as ________

question 21

Multiple Choice

Every corporation is recognized and treated under the law as ________.

• A) an entity, much like a person, that has expenses and earnings
• B) a small business
• C) a large business
• D) if it were its owners and employees

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Definitions:

Promissory Note

A tool used in finance that carries an explicit pledge by a party to give another party a defined sum of cash, which may be required instantly or at a later date agreed upon by both parties.

Accounts Receivable Turnover

Accounts Receivable Turnover is a financial ratio that measures how many times a company can turn its accounts receivable into cash during a period, indicating the efficiency of collecting debts.

Aging of Accounts Receivable

An accounting process that categorizes outstanding receivables based on the length of time they have been unpaid.

Expense Recognition Principle

An accounting principle that states expenses should be recognized and recorded when they contribute to generating revenue, regardless of when cash is paid.