Zack Jones operates a sole proprietorship, selling sporting equipment. He has recently prepared financial statements for the fiscal year end of the business. Which equity accounts would you expect to see on the balance sheet?
A. Common Shares, Dividends, and Owner’s Equity
B. Common Shares, Capital, and Withdrawals
C. Capital and Withdrawals, grouped or added under Owner’s Equity
D. Owner’s Equity and Dividends, netted together as Retained Earnings
Answer:C
Zack Jones operates a sole proprietorship, selling sporting equipment. He has recently prepared financial statements for the fiscal year end of the business. Which equity accounts would you expect to see on the balance sheet?
A. Common Shares, Dividends, and Owner’s Equity B. Common Shares, Capital, and Withdrawals C. Capital and Withdrawals, grouped or added under Owner’s Equity D. Owner’s Equity and Dividends, netted together as Retained Earnings