The main difference between the financial statements prepared for a sole proprietorship and those prepared for a company is:

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The main difference between the financial statements prepared for a sole proprietorship and those prepared for a company is the level of detail in the reports. Companies are required to provide more detailed financial information to their stakeholders, including shareholders and potential investors. Sole proprietors may only need to prepare basic financial statements for tax purposes. The number of statements prepared and the timing of their preparation may vary depending on the size and complexity of the business, but this is not the main difference between the two. Additionally, companies are required to prepare a cash flow statement under generally accepted accounting principles (GAAP).

The Main Difference Between the Financial Statements Prepared for a Sole