Which of the Following Is True About a Proprietorship

question 35

Multiple Choice

Which of the following is true about a proprietorship?

• A)The capital account is used to record only the investments of the owner.
• B)The drawing account records distribution of assets to the proprietor.
• C)A proprietorship is a separate legal entity from the owner.
• D)A proprietorship is subject to income tax.

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Definitions:

Purchase

The act of buying goods, services, or property for money or its equivalent.

Close

The stage in the sales process where a salesperson attempts to secure a commitment or agreement from the prospect to make a purchase.

Secondary

Pertaining to a second level or tier in importance, order, or rank.

Backup Close

A sales technique used as an alternative closing strategy if the primary sales pitch fails to persuade the customer.