Which of the Following Statements Best Describes Accounting for a Partnership

question 32

Multiple Choice

Which of the following statements best describes accounting for a partnership?

• A)A partnership may be a profit or a nonprofit entity.
• B)A partnership may use federal income tax rules to account for transactions in their journals and ledger accounts.
• C)A partnership's equity section contains both capital and retained earnings accounts.
• D)A partnership may only distribute money through a dividend payment.

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Definitions:

Unintended

Refers to effects or outcomes that were not anticipated or planned for.

Deregulation

The reduction or elimination of government power in a particular industry, usually with the goal of increasing competition and efficiency.

Regulated Industries

Sectors of the economy that are subject to governmental controls and regulations, often to protect public interest.

Decreased Prices

A situation where the cost of goods or services is reduced from a previous level.