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Which of the Following Apply to a Sole Proprietorship

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Which of the following apply to a sole proprietorship:


Definitions:

Total Liabilities

The cumulative amount of all debts and financial obligations a company owes to outside parties.

Accounts Receivable

Receivables from clients to a corporation for merchandise or services that have been supplied but remain unpaid.

Merchandise Inventory

Merchandise inventory represents the goods a company has in stock that are ready to be sold in the normal course of business.

Accounts Payable

Accounts payable are liabilities representing the amounts that a company owes to creditors for purchases or services rendered that have not yet been paid.

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