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    Owner's Equity of a Proprietorship of Partnership

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    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

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    https://brainmass.com/business/issuing-equity/owners-equity-proprietorship-partnership-519276

    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 ...

    Solution Summary

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

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