Regarding Accounting Information and Records, a Proprietorship Is an Entity

question 46

Multiple Choice

Regarding accounting information and records, a proprietorship is an entity entirely separate from its:

• A)vendors.
• B)proprietor.
• C)customers.
• D)shareholders.

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Definitions:

Financial Statement

A written record that conveys the business activities and financial performance of a company, including balance sheets and income statements.

Permanent/Temporary

Classification of accounts where permanent accounts refer to items on the balance sheet and temporary accounts to items that pertain to the income statement.

Normal Balance

The side (debit or credit) of an accounting entry where increases to the account are recorded, depending on the type of account.

Financial Statement

Reports that summarize the financial performance, position, and cash flows of a business over a specified period.