Purchase Solution

Owner's Equity of a Proprietorship of Partnership

Not what you're looking for?

Ask Custom Question

In comparison to the owners' equity section of a corporation's balance sheet, owners' equity of a proprietorship or partnership:
a) normally does not make a distinction between invested capital and retained earnings
b) normally uses "Capital" accounts for each individual owner, rather tha a "Retained Earnings" account for all of the owners.
c) normally uses a "Drawings" account for each individual owner, rather than a "Dividends" account for all the owners.
d) all of the above

Purchase this Solution

Solution Summary

This solution contrasts the equity section of a corporation to that of a partnership or sole proprietorship.

Solution Preview

The correct answer is d) all of the above.

A sole proprietorship is an alter-ego of the company's owner. The owner usually has a single Capital account for his or her investments and earnings and a Drawings account for the ...

Purchase this Solution


Free BrainMass Quizzes
Operations Management

This quiz tests a student's knowledge about Operations Management

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Introduction to Finance

This quiz test introductory finance topics.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.