Sole Proprietors Can Look Only to Their Own Resources to Finance

question 209

Multiple Choice

Sole proprietors can look only to their own resources to finance the business operation. They cannot sell shares and are restricted to their own ________ standing when borrowing money to finance the business.

• A) asset
• B) debt
• C) profit
• D) credit
• E) retained earnings

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Definitions:

Bank Reconciliation

Aligning an organization's cash account records in its accounting books with the relevant details found in a bank statement.

Bank Statement Adjustment

The process of reconciling differences between the balance shown on a bank statement and the amount shown in a company's financial records.

Interest Revenue

Income that is earned from investments, loans, or any other interest-bearing assets.

Internal Control

A process designed to ensure the reliability of financial reporting, compliance with laws and regulations, and effective and efficient operations.