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 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