Equity on the Balance Sheet of a Sole Proprietorship Is

question 90

Multiple Choice

Equity on the balance sheet of a sole proprietorship is normally referred to as:

• A) owner's equity.
• B) shareholders' equity.
• C) reserves.
• D) ordinary shares.

---

Definitions:

Trade Discount

A trade discount is a reduced price offered by suppliers to retailers or other professionals in the industry, encouraging bulk purchases or to compensate for distribution services.

Cumulative Quantity Discount

A discount policy where the price reduction is based on the total volume of purchases made over time, encouraging repeated business by rewarding larger orders.

Stated Period

A specific, predefined duration of time mentioned in a document or agreement.

Certain Amount

A specific quantity or measure of something, often used in financial contexts or to specify quantities.