Which of the following is true about a sole proprietorship?
A)The capital account is used to record only the investments of the owner.
B)The drawing account records distribution of assets to the proprietor.
C)A sole proprietorship is a separate legal entity from the owner.
D)A sole proprietorship is subject to a business income tax.

Question

Quizplus · Accepted Answer

The drawing account in a sole proprietorship is used to record the distribution of assets to the owner, such as withdrawals for personal use.

Which of the Following Is True About a Sole Proprietorship