A _____ Existed When There Was an Honest Attempt to Comply

question 14

Multiple Choice

A _____ existed when there was an honest attempt to comply with the mandatory provisions of the corporate statute, yet the attempt still failed in some material respect.

• A) de jure corporation
• B) de facto corporation
• C) corporation by estoppel
• D) close corporation

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Definitions:

Revenue Recognition Principle

An accounting guideline that determines the specific conditions under which revenue is recognized or accounted for.

Expense Recognition Principle

A core principle of accrual accounting that dictates when expenses are recognized and reported in the financial statements, generally aligning expenses with the revenues they help to generate.

Income Statement

A financial report detailing a company's revenue, cost of goods sold, gross profit, operating expenses, and net income over a specific period.

Managers

Individuals responsible for planning, directing, and overseeing the operations and fiscal health of a business or organization.