In a Partnership,the Owners of the Business and the Business

question 248

Multiple Choice

In a partnership,the owners of the business and the business are ________,and in a sole proprietorship,the owner of the business and the business are ________.

• A)separate legal entities; also separate legal entities
• B)not separate legal entities; also not separate legal entities
• C)not separate legal entities; separate legal entities
• D)separate legal entities; not separate legal entities

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Definitions:

Indebtedness Guarantees

Commitments made by one party to assume responsibility for the debt obligation of another party if that party fails to make payment.

Noncollectibility Receivables

Accounts receivable that are considered unlikely to be collected by a business.

Gain Contingencies

Possible gains or income that a business might receive, contingent upon future events that can't be predicted with certainty.

Footnotes

Supplementary notes at the bottom of financial statements providing additional detail about data or items on the statements.