The Chart of Accounts for a Partnership, with the Exception

question 152

True/False

The chart of accounts for a partnership, with the exception of drawing and capital accounts, does differ from the chart of accounts for a sole proprietorship.

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Definitions:

Corporations

Legal entities that are separate and distinct from their owners, established to conduct business, earn profit, and be endowed with legal rights.

Adjusting Entries

Journal entries made at the end of an accounting period to update accounts for accruals and deferrals not yet recorded through daily transactions.

Closing Entries

Entries made at the end of an accounting period to transfer the balances of temporary accounts to a permanent owner’s equity account, Owner’s Capital.

Correcting Entries

Entries to correct errors made in recording transactions.