In a Partnership,the Entry to Close Net Loss ________

question 126

Multiple Choice

In a partnership,the entry to close net loss ________.

• A) increases assets
• B) increases liabilities
• C) decreases Partners' Capital accounts
• D) decreases the Income Summary account

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Definitions:

Outstanding Checks

Checks that have been written and recorded by an entity but not yet cleared or cashed by the recipient.

Control Environment

The control environment forms part of an organization’s internal control framework, setting the tone for discipline and structure regarding the internal controls and operational processes.

Risk Assessment

The process of identifying, analyzing, and evaluating the likelihood and impact of risks on a project or organization.

Control Procedures

Policies and procedures that are put in place by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.