How Do Sole Traders, Partnership And Company Financial Statements Differ?


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Katie Harry answered
These three terms are totally different from each other.

A sole proprietorship also termed as a sole trader is a type of business entity in which all legal activities has any individual existence from the owner. It’s mostly on the owners own legal name.

A partnership is known to be a type of business entity where profits and losses are shares by the partners or in simple words the owners of a business in which they invested all their earnings.

As for Financial statements which are also known as financial reports, these are formal records that take into account all of a business' financial activities. Financial statements include balance sheet, income statement, cash flow statements and statement of retained earnings.

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