Accounting for assets, liabilities, revenues, and expenses is the same, regardless of the form of business organization. The main distinction between the forms of organizations is found in (1) the terminology that is used to name the equity section, and (2) the accounting and reporting of the owners' investments and withdrawals.

From the list provided, choose the answer that best fits for each of the three forms of business organizations.

		Proprietorship		Partnership		Corporation
Equity section called:		Shareholders' equityPartner's equityOwner's equity		Partner's equityShareholders' equityOwner's equity		Partner's equityOwner's equityShareholders' equity
Name of statement to report changes in equity:		Statement of Partner's EquityStatement of Owner's EquityStatement of Changes in Equity (IFRS)		Statement of Owner's EquityStatement of Changes in Equity (IFRS)Statement of Partner's Equity		Statement of Owner's EquityStatement of Partner's EquityStatement of Changes in Equity (IFRS)
Investments by owners added to:		Retained earningsPartner's capitalShare capitalOwner's capital		Owner's capitalRetained earningsShare capitalPartner's capital		Owner's capitalRetained earningsShare capitalPartner's capital
Profits added to:		Retained earningsOwner's capitalShare capitalPartner's capital		Share capitalPartner's capitalOwner's capitalRetained earnings		Share capitalRetained earningsPartner's capitalOwner's capital
Withdrawals by owners called:		DividendsDrawings		DividendsDrawings

Answer rating: 100% (QA)

Proprietorship Partnership Corporation Equity section called Owners equity Partners equit... View the full answer