A Sole Proprietorship

question 62

Multiple Choice

A sole proprietorship

• A)dies with the owner.
• B)is the same as a partnership.
• C)always bring a higher return to its owner than a corporation brings to its owners.
• D)is a not-for-profit firm.
• E)has a complex management structure.

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Definitions:

Contra-Asset

A contra-asset account is an asset account where the account balance is a negative amount. It's used to offset the value of the asset account it is associated with, such as accumulated depreciation.

Cash Register Tapes

Physical or electronic records produced by cash registers, detailing each transaction made within a business.

Cash Short

A situation where the recorded amount of cash does not match the actual amount of cash available, often indicating errors or theft.

Cash Over

A situation where the amount of cash on hand is more than what was expected or reported, often requiring investigation.