Keith and Jim Formed a Partnership,with the Partners Sharing Profits

question 88

Multiple Choice

Keith and Jim formed a partnership,with the partners sharing profits and losses equally.The partnership incurs a net loss of $5000 for the year.The entry to close the net loss will ________.

• A) debit Income Summary by $5000
• B) decrease Keith, Capital by $2500
• C) increase Jim, Capital by $2500
• D) decrease Jim, Capital by $5000

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Definitions:

Organizational Structure

Organizational structure outlines how activities such as task allocation, coordination, and supervision are directed toward the achievement of organizational aims, defining how job roles and responsibilities are distributed.

Integrator Roles

Positions or responsibilities in an organization that involve coordinating and synthesizing information across different departments to ensure aligned and efficient operations.

Direct Supervision

A management approach where managers closely oversee and control the work of their subordinates, often involving immediate feedback and instructions.

Informal Communication

The unofficial and casual exchange of information between individuals in an organization, outside formal channels.