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:

Pain-controlling Chemicals

Substances produced by the body, or administered externally, that can reduce or block the sensation of pain.

Endorphins

Biochemicals produced in the brain that act as natural painkillers and mood enhancers.

Androgens

A group of hormones that play a role in male traits and reproductive activity; present in both males and females.

Histamines

Compounds involved in local immune responses as well as regulating physiological function in the gut and acting as neurotransmitters.