Which of the Following Statements Is True About a Partnership

question 109

Multiple Choice

Which of the following statements is true about a partnership?

• A)One capital and one drawing account is used for each partnership.
• B)A separate capital account is used to record each partner's investment and that partner's designated share of the earnings.
• C)Partnerships are subject to separate business income taxes.
• D)The drawing account is closed to retained earnings at the end of the period.

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Definitions:

Age

A measure of the time an individual has existed from birth, often used to reference growing older and the associated physiological and mental developments or declinations.

Dating

A stage of romantic relationships in humans whereby two people meet socially with the aim of each assessing the other's suitability as a prospective partner in a more committed relationship or marriage.

Divorce

The official ending of a marriage through legal proceedings by a court or a qualified entity.

Stepparent

A person who is married to a child’s biological parent and assumes a parenting role but is not the child's biological mother or father.