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:

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are explicitly stated objectives set down on paper or digital format, which serve to guide behavior by providing a clear target for effort and achievement.

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Defines a group of individuals sharing common traits or attributes, making them distinguishable within the broader society.

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