The difference between the corporate form of business organization and other forms is most clearly shown in which of the following sections of the financial statements?

Question

Quizplus · Accepted Answer

The equity section of the balance sheet shows the ownership and financing of the company, which is unique to the corporate form of business organization. Other forms of business organization, such as sole proprietorships and partnerships, do not have a separate legal entity and therefore do not have owners who hold equity in the company. The expenses section of the income statement, assets section of the balance sheet, and operating activities section of the statement of cash flows may be similar across different forms of business organization.

The Difference Between the Corporate Form of Business Organization and Other