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Popular Accounting Topics

Accounting for Merchandising Activities
Debits and Credits (Double Entry Accounting)
Time Value of Money & Present/Future Values
Complex Debt & Equity Instruments
Common Stock & Shareholder's Equity
Accounting & Finance Ratios
Valuing Common Stock
Corporate Income Taxes
Lower of Cost or Market (LCM) & Inventory Valuation
Chart of Accounts & Bookkeeping
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A self proprietorship, partnership or corporation providing a service or selling products in order to earn a profit and pay its employees, suppliers & creditors.

Sole Proprietorship

• A business owned by one person.
• The most common form of ownership in our economy.
• E.g stores, farms, service businesses.
• From an accounting viewpoint, it is a business entity separate from the affairs of the owner.
• From a legal standpoint, they are not separate entities and the owner is personally liable for the debts of a business.
• If the business fails, creditors may force the owner to sell personal assets to pay off debts.


• an unincorporated business owned by two or more persons.
• not legally an entity separate from its owners (owners are personally responsible for debts of the business).
• accounting practices sees the business as separate from personal affairs.


• the only type of business recognized legally as separate from its owners (owners are not personally responsible for debts).
• limited liability - you can only lose what you have invested in the business.
• owners are shareholders and hold transferable shares of capital stock (the stock can be sold).
• most large businesses are organized as corporations.

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