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- What do we mean when we say that capital, drawing, revenue, and expense accounts are under the umbrella of owners equity?What accounting policies are disclosed in the notes accompanying a companys financial statements? Why is this disclosure important?The primary financial statements prepared for a sole proprietorship are the income statement, statement of changes in owners equity and the balance sheet. True or false?
- Why is the Equity of an owner shown in the Liabilities and not in the Assets on a companies Financial Statement?What is the account used to record amounts withdrawn for personal use (not for business use) by an owner of a sole proprietorship called? Group of answer choices revenue capital drawing investmentHow does the type of business structure affect accounting, reporting, taxes, and liability?
