Question

The primary financial statements prepared for a sole proprietorship are the income statement and the balance sheet.

a. true
b. false

Answer 1

True. The primary financial statements prepared for a sole proprietorship are the income statement and the balance sheet.

Step-by-step explanation:

The correct answer is a. true. The primary financial statements prepared for a sole proprietorship are the income statement and the balance sheet. The income statement shows the revenues and expenses of the business, while the balance sheet provides a snapshot of the business's assets, liabilities, and owner's equity.