The Entry to Record a Partner's Salary Allowance Consists of a Debit

question 43

Multiple Choice

The entry to record a partner's salary allowance consists of a debit to

• A) the partner's capital account and a credit to Cash.
• B) Salaries Expense and a credit to the partner's drawing account.
• C) Income Summary and a credit to the partner's capital account.
• D) Income Summary and a credit to the partner's drawing account.

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Definitions:

Statement of Financial Position

The statement of financial position, often called a balance sheet, is a financial report that shows a company's assets, liabilities, and shareholders' equity at a specific point in time.

Current Liabilities

Obligations or debts that a company must pay within a year.

Normal Balance

the side (debit or credit) on which increases to an account are recorded, based on the type of account (asset, liability, equity, revenue, or expense).

Contra-Asset

An account that offsets or reduces the balance of a related asset account, such as accumulated depreciation.