The Accounting Procedures Are the Same for Sole Proprietorships as for Partnerships

question 85

Multiple Choice

The accounting procedures are the same for sole proprietorships as for partnerships with the exception of:

• A)the asset section includes more than one cash account.
• B)the liability section.
• C)the revenue section.
• D)the capital section is now divided per the number of partners.

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Definitions:

Par Value

The nominal or face value of a share of stock or a bond as stated by the issuer, which is often minimal and has little relation to its market price.

Business Combination

The process of merging two or more companies into a single entity, often to expand business operations or to enter new markets.

Consolidated Common Stock

The aggregation of common stock of a parent company and its subsidiaries, presented as total common stock in consolidated financial statements.

Common Stock

Common stock represents ownership shares in a corporation, giving holders voting rights and a portion of the company's profits through dividends.