In a Partnership,the Entry to Close Net Income ________

question 69

Multiple Choice

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

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

---

Definitions:

Extra Income

Additional money earned beyond the regular income, which can come from various sources such as a second job, investments, or side businesses.

Compensating Variation

A monetary measure of the amount of income required to return an individual to their original utility level after a price change.

Price Increase

A rise in the cost of goods or services, which can occur due to various factors including increased production costs, higher demand, or inflation.

Optimal Bundle

The combination of goods and services that maximizes an individual's utility given their budget constraint.