Answer: A person who owns and runs a business, which is normally a small business (eg. Shop Owner).
The sole trader has unlimited liability, meaning that his assets will be used in case of default to pay.
Banks earn interest when people pay back loans.
I believe the fourth step is to 'Evaluate Your Sources'. As In for example, writing down all websites you have used to find info for a project.
Answer:
$500
Explanation:
Data provided in the question
Salary for the first year = $50,000
CPI increase during the year = 4%
Overstated inflation = 1% i.e 5%
The computation of the increased in salary is shown below:
= Salary of the first year × inflation rate - salary of the first year × CPI increase during the year
= $50,000 × 5% - $50,000 × 4%
= $2,500 - $2,000
= $500
Answer:
Revenues are closed out to Equity (Retained Earnings) for Corporate.
Explanation:
Actually, for both Sole Proprietor and Corporate, the account that is closed out to Capital or Equity is the difference between the Revenue and the Expenses for the accounting period. This is more specifically referred to as Net Income. This is the bottom-line profit, which is available for distribution to the owners of the entity in the form of capital withdrawals for Sole Proprietorships and dividends for Corporate entities.
