Which of the Following Is True About a Sole Proprietorship

question 92

Multiple Choice

Which of the following is true about a sole proprietorship?

• A)The capital account is used to record only the investments of the owner.
• B)The drawing account records distribution of assets to the proprietor.
• C)A sole proprietorship is a separate legal entity from the owner.
• D)A sole proprietorship is subject to a business income tax.

---

Definitions:

Population Standard Deviation

The population standard deviation is a measure of the dispersion or spread of a set of values within a population, quantifying how much the values differ from the population mean.

Square Root

A value that, when multiplied by itself, gives the original number, representing the inverse operation of squaring.

Population

The total set of individuals, items, or data from which samples can be drawn for statistical analysis.

Sample Value

A single measurement or observation from a larger set of data collected from a population.