In What Manner Are a Sole Proprietorship and a Partnership

question 68

Multiple Choice

In what manner are a sole proprietorship and a partnership similar?

• A) There is no legislated regulation affecting either.
• B) Both require special steps to create.
• C) Neither is a legal entity with capacity to contract.
• D) Both require regulation of their profit motives.

---

Definitions:

Balance Entered

A term that is not typically used in standard financial or accounting lexicon; it could imply recording or entering a balance into financial records. NO.

Trial Balance Preparation

The process of creating a trial balance, which is a bookkeeping worksheet listing the balance of all ledgers for checking the mathematical correctness of the books.

Account Balance

The amount of money in a financial repository at any given moment, which can represent credit or debit balances.

Horizontal Analysis

An analytical technique in financial statement analysis where the amounts of financial data for multiple periods are compared to detect trends and changes.