Question

Reporting changes in partnership capital accounts is similar to reporting changes for a.a limited liability trust. b.a corporate shareholder. c.a proprietorship. d.None of these choices are correct.

Answer 1

Answer:

C) a proprietorship.

Explanation:

Partnerships and sole proprietorships operate very similarly, specially because of how their owners are taxed. You must remember that reporting requirements are established or approved by the IRS, and since they are both pass-through entities they accounting and reporting procedures are similar.