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nikdorinn [45]
3 years ago
5

Which of the following statements are true regarding owners' equity and ownership rights held in noncorporate entities?

Business
1 answer:
Degger [83]3 years ago
5 0

Answer: A. Owners' equity for proprietorships and partnerships is usually referred to as capital.

B. No distinction is made between invested capital and retained earnings for a proprietorship or a partnership.

C. Neither proprietorships or partnerships issue stock.

Explanation:

The statements that are true regarding owners' equity and ownership rights held in noncorporate entities include:

• No distinction is made between invested capital and retained earnings for a proprietorship or a partnership.

• Neither proprietorships or partnerships issue stock.

• Owners' equity for proprietorships and partnerships is usually referred to as capital.

We should note that sole proprietorships and partnership typically don't have stockholders and shouldn't issue stock as they aren't separated from their founders.

Also, the owners' equity for proprietorships and partnerships is usually referred to as capital. We should note that for a sole proprietorship or a partnership, the equity is the owners capital account which can be seen on the balance sheet.

Based on the above explanation, all the options given above are correct.

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