What is a sole proprietorship, Basic Statistics

What is a sole proprietorship?

A sole proprietorship is a form of business organization that is owned by one person. The owner is referred to as a sole proprietor.

In accounting, the balance sheet of the sole proprietorship reflects the accounting equation: Assets = Liabilities + Owner's Equity. Owner's Equity consists of the owner's capital account and also a drawing account. The drawing account is a temporary account in which the owner's current year draws or withdrawals are recorded. (The sole proprietor has draws because he or she does not receive a salary or wages. Hence, the income statement will not report an expense for the owner's work. This means that the net income reflects the total return for the owner's work and investment.)

A sole proprietorship is not legally separate from its owner (as would be the case with a corporation). However, a sole proprietor may be able to register as a limited liability company in order to limit his or her personal liability. Be sure to seek professional advice as to the appropriate form of business for your situation and location.

Expertsmind.com offers unique accounting assignment help

Posted Date: 3/31/2012 7:04:50 AM | Location : United States







Related Discussions:- What is a sole proprietorship, Assignment Help, Ask Question on What is a sole proprietorship, Get Answer, Expert's Help, What is a sole proprietorship Discussions

Write discussion on What is a sole proprietorship
Your posts are moderated
Related Questions
Two components, A and B, are used as follows: normal usage - 50 per week each minimum usage - 25 per week each maximum usage - 75 per week re-order quantity - A:300; B:500 re-order

APPROVING MANAGER An individual within an agency who is responsible for assigning buy card custodians and developing buy card limits within the organization.

What are the major advantages of the Single Entry System? Ans. A Single Entry system is considered to be the most simplest method to record the financial transaction, only cash bo

types of netwoths

impact of cost accounting technique in organizational performance

A drainage system overows into a river causing pollution when the rainfall falling in an hour exceeds 50 mm. During any given year, the maximum hourly rainfall follows an exponenti

Consider the Kristen Cookie Company case. From the note: Wash&Mix: 6 mins per order (max 3 dozen) Dish up: 2 mins per dozen Set up timer: 1 min per dozen Bake: 9 mins per dozen

Describe portfolio ratio, i need assignment help in portfolio ratio based questions.

Use the concepts of sampling error and z scores to explain the concept of distribution of sample means.

Check numbers for No Neighboring States with Video Gaming, 2% inflation, 4 Average Bets Numbers for 2018 Average Return -0.082 Net Income -$2,052,859 End of Year Cash $5,0