Which of the following statements is TRUE for a proprietorship?
A)Legally,a proprietorship is separate from the proprietor.
B)For accounting purposes,a proprietorship is separate from the proprietor.
C)The business records include the proprietor's personal finances.
D)All statements are correct.

Question

Quizplus · Accepted Answer

For accounting purposes, a proprietorship is considered separate from the proprietor. This means that the business's financial records are maintained separately from the personal finances of the owner, even though legally the business and the owner are considered the same entity.

Which of the Following Statements Is TRUE for a Proprietorship