The Owners' Equity Statement for a Partnership Is Called the

question 99

Multiple Choice

The owners' equity statement for a partnership is called the

• A) partners' proportional statement.
• B) partners' capital statement.
• C) statement of shareholders' equity.
• D) capital and drawing statement.

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Definitions:

Income Summary Account

An account used to transfer the balances of temporary accounts to a permanent account at the end of an accounting period, summarizing revenue and expenses.

Closing Process

The procedure at the end of an accounting period where income and expense accounts are cleared out to start the new period with a zero balance.

Revenues and Expenses

Pertains to the income generated from normal business operations and the costs incurred to generate that income, crucial for determining net profit.

Special Account

A unique account that is established for a specific purpose, often outside the regular operations or financial structure.