A Balance Sheet of a Sole Proprietorship Includes Only the Business

question 61

True/False

A balance sheet of a sole proprietorship includes only the business assets and liabilities,not the personal assets of the owner.

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Definitions:

Dividend Payable

A liability recorded on a company's balance sheet for dividends that have been declared but not yet paid to shareholders.

Dividend Receivable

The amount due to shareholders from declared dividends by the company in which they hold shares, recognized as an asset on the balance sheet until paid.

Elimination

The process of removing intercompany transactions when consolidating financial statements of a group.

Consolidation

The process of combining the financial statements of multiple subsidiaries with those of the parent company to present as a single entity.