Commerce Exam  >  Commerce Videos  >  Basic Accounting Terms - Proprietor & Entity : Class 11

Basic Accounting Terms - Proprietor & Entity : Class 11 Video Lecture - Commerce

FAQs on Basic Accounting Terms - Proprietor & Entity : Class 11 Video Lecture - Commerce

1. What is the meaning of the term "proprietor" in accounting?
Ans. In accounting, the term "proprietor" refers to the owner of a business who has invested their own capital and is solely responsible for the profits, losses, and liabilities of the business. The proprietor is also known as a sole proprietor or a sole trader.
2. What is the meaning of the term "entity" in accounting?
Ans. In accounting, the term "entity" refers to any organization or individual that is separate and distinct from its owners or participants. It can be a business, a government agency, a non-profit organization, or any other legal entity that engages in economic activities.
3. What are the differences between a proprietor and an entity in accounting?
Ans. The main differences between a proprietor and an entity in accounting are as follows: - Proprietor: A proprietor is an individual owner who invests their own capital and is solely responsible for the profits, losses, and liabilities of the business. They have unlimited liability and bear all the risks associated with the business. - Entity: An entity can refer to any organization or individual that engages in economic activities. Unlike a proprietor, an entity can have multiple owners or participants, limited liability, and a separate legal existence from its owners.
4. Can a proprietorship be considered an entity in accounting?
Ans. Yes, a proprietorship can be considered an entity in accounting. While a proprietorship is often associated with a single owner, it is still recognized as a separate accounting entity. From an accounting perspective, the proprietorship's financial transactions and records are kept separate from the personal finances of the owner.
5. What are some examples of entities in accounting?
Ans. Some examples of entities in accounting include: - Partnership: A business owned and operated by two or more individuals who share the profits, losses, and liabilities. - Corporation: A legal entity that is separate from its owners, with limited liability for the shareholders. - Non-Profit Organization: An entity that operates for purposes other than profit, such as charities or educational institutions. - Government Agency: An entity that is part of the government and engages in various economic activities on behalf of the government.
Related Searches

Objective type Questions

,

Extra Questions

,

video lectures

,

mock tests for examination

,

Basic Accounting Terms - Proprietor & Entity : Class 11 Video Lecture - Commerce

,

Previous Year Questions with Solutions

,

Sample Paper

,

Basic Accounting Terms - Proprietor & Entity : Class 11 Video Lecture - Commerce

,

Summary

,

shortcuts and tricks

,

MCQs

,

practice quizzes

,

pdf

,

Free

,

Viva Questions

,

study material

,

Important questions

,

Exam

,

past year papers

,

ppt

,

Basic Accounting Terms - Proprietor & Entity : Class 11 Video Lecture - Commerce

,

Semester Notes

;