A Business with a Single Owner Is Called a

question 52

Multiple Choice

A business with a single owner is called a

• A) partnership.
• B) sole proprietorship.
• C) corporation.
• D) limited liability company.

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Definitions:

Deferred

Accounting term used to describe revenues or expenses that have been incurred but not yet recorded in accordance with accrual accounting principles.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including materials and labor costs.

Reported Gain

The profit reported on financial statements, reflecting the difference between the sale price of an asset and its book value.

Equity Method

An accounting technique used to record investments in other companies, recognizing income proportional to ownership.