Which of the Following Statements Is True About Partnership Accounting

question 54

Multiple Choice

Which of the following statements is true about partnership accounting?

• A) A particular partner's capital account is debited when a withdrawal takes place by that partner.
• B) Through the closing entry process for a partnership, a positive net income results in an increase in overall partner capital.
• C)The drawings account balances are subtracted to arrive at the net income to allocate to the partners.
• D)The drawings account is closed to retained earnings at the end of the perioD.The capital account in a partnership keeps track of each partner's capital balance and is affected by partner investments and withdrawals as well as net income.

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Definitions:

Sales Presentation

A structured pitch by a salesperson to persuade a potential buyer about the benefits and features of a product or service.

Feedback Signals

Information or responses received from an audience or system that indicate whether an action or process is effective or preferred.

Evaluative Listener

A listener who focuses on the content of the message and evaluates or judges the information being presented.

Decoding Tools

Instruments or methods used to interpret or make sense of encoded information or data.