A Sole Proprietorship Lasts for How Long If It Continues

question 90

Multiple Choice

A sole proprietorship lasts for how long if it continues to run unabated?

• A)For 100 years
• B)10 years with an option to renew for another 10 years
• C)Until the death of the owner
• D)30 years then the business has to be reformed

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Definitions:

Gross Profit

The difference between sales and the cost of goods sold.

Periodic Inventory Method

An accounting approach where inventory is physically counted at specific intervals to determine the cost of goods sold and ending inventory levels.

Beginning Inventories

Beginning inventories are the value of a company's inventory at the start of an accounting period, serving as a basis for determining the cost of goods sold.

Ending Inventories

The final value of goods available for sale at the end of an accounting period, calculated through physical count or estimation.