Jim Linght has personal assets of $430,000 and business assets of $1,580,000. Because he is a sole proprietor, he should report all $2,010,000 of assets on his company's balance sheet.

Question

Quizplus · Accepted Answer

As a sole proprietor, Jim Light's personal and business finances are legally considered the same entity, but for accounting purposes, only business assets ($1,580,000) should be reported on the company's balance sheet. Personal assets are not included in the business's financial statements.

Jim Linght Has Personal Assets of $430,000 and Business Assets