When Closing the Accounts of a Partnership It Is True

question 59

Multiple Choice

When closing the accounts of a partnership it is true that:

• A) partner's salaries must be treated as drawings because partners are owners.
• B) a retained profits account is used rather than a profit or loss summary account.
• C) profit is credited to each partner's capital account according to the profit sharing agreement.
• D) a loss for the period is carried forward and is not transferred to the partner's capital accounts.

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Definitions:

Standard Deviations

A measure used in statistics to quantify the amount of variation or dispersion of a set of values.

Strong-Form Efficient

A form of market efficiency that asserts all information, public and private, is fully reflected in stock prices, negating any insider advantages.

Historical Prices

Historical prices refer to the recorded prices or values of an asset or investment over previous time periods, serving as a data point for analyzing trends.