A Sole Proprietorship Is Owned By

question 30

Multiple Choice

A sole proprietorship is owned by:

• A)one person.
• B)two or more persons.
• C)shareholders.
• D)bankers.

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations using its current assets.

Balance Sheet

A financial report that offers a moment-in-time overview of a company's financial status, detailing its assets, liabilities, and shareholders' equity.

Sales On Account

Transactions where the buyer is allowed to purchase goods or services with the agreement to pay at a later date, typically recorded as accounts receivable.

Cost Of Goods Sold

Direct costs attributable to the production of the goods sold by a company.