D & E Are Equal Partners and Are Closing Their

question 24

Multiple Choice

D & E are equal partners and are closing their drawing accounts on December 31.Each partner had withdrawn $75,000.The correct entry to close their drawing accounts would be a credit to D Drawing and E drawing for $75,000 and debit to:

• A)​D & E Capital for $75,000
• B)​D & E Cash for $150,000.00
• C)​D & E Capital for $150,000
• D)​D & E Assets for $75,000

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Definitions:

Aggregate Demand

The comprehensive demand for every type of good and service within an economy, identified at a given price level and time period.

Investment

is the allocation of resources, usually money, in expectation of earning a future return.

GDP Gap

The difference between the actual GDP and the potential GDP of an economy, indicating under-utilization or over-utilization of resources.

Government Bonds

Financial securities issued by a government to finance its budget deficits and various public sector projects.