In a sole proprietorship,the equity portion of the balance sheet is known as ____________ equity.
A)accumulated
B)buyers'
C)owners'
D)stockholders'

Question

Quizplus · Accepted Answer

In a sole proprietorship, the equity portion of the balance sheet is known as "owners' equity" because the owner is the only one who has invested in the business and therefore owns all the equity. Accumulated equity would not be accurate as it implies that the equity has been gradually accumulating over time, which may not be the case. Buyers' equity and stockholders' equity would not apply as these terms refer to equity held by multiple parties in a partnership or corporation.

In a Sole Proprietorship,the Equity Portion of the Balance Sheet