The Partners' Drawing Accounts Are

question 129

Multiple Choice

The partners' drawing accounts are

• A) reported on the income statement.
• B) reported on the balance sheet.
• C) closed to Income Summary.
• D) closed to the partners' capital accounts.

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Definitions:

Controllable Fixed Costs

Fixed costs that management has the ability to influence or change in the short term, such as advertising expenses.

Controllable Margin

The portion of profit or contribution margin that a manager has direct control over, before fixed costs and overhead are deducted.

Responsibility Report

A management tool that collects and reports planned and actual financial information by responsibility centers.

Direct Labor

Workers or employees who are directly involved in the manufacturing of products or delivery of services.