COST ACCOUNTING
COST ACCOUNTING STANDARDS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Persons using accounting information who are directly involved in managing and operating an organization; examples include managers and officers.
|
|
|
The owner’s liability is limited to their investment in the business.
|
Detailed explanation-1: -limited liability, condition under which the losses that owners (shareholders) of a business firm may incur are limited to the amount of capital invested by them in the business and do not extend to their personal assets.
Detailed explanation-2: -Limited liability is a form of legal protection for shareholders and owners that prevents individuals from being held personally responsible for their company’s debts or financial losses.
Detailed explanation-3: -What Is Limited Liability? Limited liability is a type of legal structure for an organization where a corporate loss will not exceed the amount invested in a partnership or limited liability company (LLC). In other words, investors’ and owners’ private assets are not at risk if the company fails.
Detailed explanation-4: -a) Limited liability refers to how much the directors have to contribute in the event of the company becoming insolvent.
Detailed explanation-5: -Limited liability companies (LLC) are defined as a type of business structure where owners of the LLC are called “members” and are partners in a business entity with all the protection of a corporation plus the ability to pass through any business profits and losses to their personal income tax return.