Which of the Following Areas Have a Major Difference in Accounting

question 8

Multiple Choice

Which of the following areas have a major difference in accounting treatment by sole traders and partnerships and accounting treatment by companies?
I. Accounting for GST
II. Accounting for equity
III. Distributions to owners
IV. Accumulation of profits
V. Accounting for inventory
VI. Accounting for income tax

• A) I, IV and V
• B) I, II and III
• C) II, III, IV and VI
• D) III, V and VI

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Definitions:

Maturity

The time at which a financial obligation must be repaid or settled in full.

Notes Receivable

Financial assets representing amounts owed to a company by others, typically from loans or credit extended, evidenced by promissory notes.

Journal Entry

The form of recording a transaction in a journal.

Maker

The entity or individual who creates or produces something, often used in contexts involving manufacturing or crafts.