Accounting, Binder Ready Version: Tools for Business Decision Making - Standalone book
6th Edition
ISBN: 9781119191674
Author: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Publisher: WILEY
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Question
Chapter L, Problem 1Q
To determine
Explain the basic
Expert Solution & Answer
Explanation of Solution
Sole proprietorship:
Sole proprietorship is one form of simple business that is owned and maintained by a single person. Set up of very simple and taking care of business is very easy. Government provides tax advantages for these firms.
Accounting equation:
Accounting equation is an accounting tool expressed in the form of equation, by creating a relationship between the resources or assets of a company, and claims on the resources by the creditors and the owners.
The basic accounting equation for a sole proprietorship is as follows:
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Chapter L Solutions
Accounting, Binder Ready Version: Tools for Business Decision Making - Standalone book
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