A Proprietorship Is a Business

question 410

Multiple Choice

A proprietorship is a business

• A) with annual sales below $100,000.
• B) in which the stock of the company is closely held by members of one family.
• C) which produces a service rather than goods.
• D) owned by one individual who is responsible legally for the debts of the firm.

Identify the significance and types of source documents in accounting.

Comprehend the double-entry accounting system and the requirements for transaction balances.

Understand the purpose and preparation of a trial balance.

Identify the normal balance for different types of accounts.

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Definitions:

Human Preference

The tendencies or inclinations humans have towards certain choices, behaviors, or objects over others, often influenced by a wide range of biological, psychological, and social factors.

Hedonism

The human preference for pleasure over pain.

Pleasure Over Pain

The principle that individuals naturally seek to experience pleasure and avoid pain, guiding much of human motivation and behavior.

Approach Motivation

The inclination or drive to move towards or pursue a desired object, goal, or outcome.