1. Accounting for the incorporation of an unincorporated business that currently exists as either a sole proprietorship or partnership involves: Select one: A. closing the owner equity accounts of the prior entity and setting up the shareholder equity accounts of the corporation B. closing the withdrawals accounts to the dividends payable accounts C. closing the owner equity accounts of the prior entity to the retained earnings account of the corporation D. leaving the owner equity accounts as is and setting up the shareholders' equity accounts for the corporation.

Dividends in arrears:

Select one A. are never reported in the notes to the financial statements

B. are forever lost by the preferred shareholders

C. are a liability on the balance sheet

D. are missed dividends on cumulative preferred shares and should be disclosed in the notes to the financial statements