The Withdrawals Account of Each Partner Is

question 73

Multiple Choice

The withdrawals account of each partner is:

• A) Closed to that partner's capital account.
• B) Closed to the Income Summary account.
• C) A permanent account that is not closed.
• D) Credited with that partner's share of net income.
• E) Debited with that partner's share of net loss.

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Definitions:

Subchapter S Election

A tax election made by small businesses to be taxed as a pass-through entity, avoiding double taxation.

Current Year

The present calendar or fiscal year in which business operations, transactions, or tax considerations are being referenced or conducted.

Form 2553

A tax form used by small businesses to elect to be treated as an S corporation for the purposes of federal taxation.

Taxable Income

The portion of income that is subject to taxation after all allowances, deductions, and exemptions are considered.