Can someone please explain statement 4?
This question is from ACCA pilot paper:
11 Which of the following are differences between sole traders and limited liability companies?
(1) A sole trader’s financial statements are private and never made available to third parties; a company’s financial
statements are sent to shareholders and may be publicly filed
(2) Only companies have share capital
(3) A sole trader is fully and personally liable for any losses that the business might make
(4) Only drawings would appear in a sole trader’s financial statements
A 1 and 4 only
B 2, 3 and 4
C 2 and 3 only