Identify the type of business organization based on the following independent financial statement findings: 1. The equity

Question:

Identify the type of business organization based on the following independent financial statement findings:

1. The equity section of the balance sheet has one capital account.

2. The owners receive dividends, a distribution of earnings, in the form of cash.

3. There are two capital accounts: Tara Davis, Capital, and Sheila Kelton, Capital.

4. The one owner receives distributions of earnings in the form of withdrawals.

5. A manager, also the owner of the business, is paid a salary that is recorded as an expense.

6. The equity on the balance sheet is held by shareholders.

7. The five owners receive distributions of earnings in the form of withdrawals.

SP - Sole proprietorship
P - Partnership
C - Corporation

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...