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

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Definitions:

Supply Chain

The network of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer.

Net Profit Margin

A financial ratio indicating the percentage of revenue that remains as net profit after all expenses are deducted from total revenues.

Leverage

The use of various techniques or borrowed capital (debt) to increase the potential return of an investment.

Outsourcing

Transferring a firm’s activities that have traditionally been internal to external suppliers.