Which of the Following Is True About a Sole Proprietorship

question 92

Multiple Choice

Which of the following is true about a sole 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 sole proprietorship is a separate legal entity from the owner.
• D)A sole proprietorship is subject to a business income tax.

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Definitions:

Above Average

Performance or measures that exceed the normal or expected benchmark.

Group Claims

Refers to assertions or demands made by a group of individuals, often in a legal or policy context, indicating a collective interest or right.

Hindsight Bias

The tendency to perceive events as having been predictable after they have already occurred.

Foreseen Past Events

Events in the past that were predicted or expected based on available information or trends at that time.