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
If an exact answer isn''t possible, I really just need a guide. The company we are using is GameStop Corp, listed as GME on the NYSE. Using the supplied information and referring

Northern Hi-Tec Electronics Limited manufactures six computer peripheral devices: internal modems , external modems , circuit boards , CD drives , hard disk drives , and memo

Amplification is the process by which the magnitudes of the variable quantity is increasing, especially the magnitude of voltage, current or power, without changing any other quant

The company acquired 50000 8% preferencd shares (with a par value of R4 each) in cross limited on 30 june 2006 for R180000.

AMOUNT AVAILABLE IN DEBT SERVICE FUNDS An "other debit" common journal value used in the General Long-Term Bills Additional Consideration that designates the quality of resources

Job Order Gosting ln an attempt to conceal a thefi of funds, Kaito Kid, controller of Shinichi Products, lnc. placed a bomb in the company s record vault. The ensuing explosion lef

What is the sampling and it importance in daily routain life. Explain stratify sampling

a) Statistics are collecting, organizing, summarizing and presenting a set of data. b)  Inferential statistics is the learn of a sample that enables us to make estimates about t

could you please tell meaning of credit and debit notes in terms of intercompany transactions.

calculate the probabilities correct to 6 decimal places. Let pie = 0.02. a. P(X less than 3,