________ is a separate legal entity that Total capital can be divided in many shares.
Correct answer: C. Company
- A. Partnership
- B. Sole proprietorship
- C. Company
- D. Non-profit organization
Explanation
A company is a separate legal entity from its owners, and its capital is divided into shares. A partnership and sole proprietorship do not normally have capital divided into shares in this corporate sense.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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