Which of the Following Is True About a Sole Proprietorship

question 90

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 income tax.

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Definitions:

Sustainable Practices

Approaches and methods that meet current needs without compromising the ability of future generations to meet their own needs, often with specific concern for environmental stewardship.

Cut Costs

A strategy designed to reduce expenses in order to improve financial performance.

Sustainability Goals

Targets set by an organization or government to achieve better environmental, social, and economic outcomes as part of a sustainability strategy.

Stakeholders

Individuals or groups that have an interest, claim, or stake in a company, project, or outcome, and can affect or be affected by the business's actions.