Which of These Is Not a Feature of the Fixed

question 39

Multiple Choice

Which of these is not a feature of the fixed capital balances method method 2) of accounting for partnership equity?

• A)Each partner has two permanent equity accounts,a capital account and a retained earnings account
• B)Apart from the initial investment very few adjustments are made to the capital account
• C)Partner's drawings are closed to their capital accounts
• D)The profit and loss distribution account is closed to the partner's retained earnings accounts

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Definitions:

ABC Method

A time management approach that categorizes tasks based on their importance, with 'A' being the most critical tasks.

Activate

To start or turn on a process or device, bringing it into action or making it operative.

Accept

To receive willingly something that is offered or to acknowledge an event or situation as true.

Self-Assessment

Recognition of the need to learn new tasks and subjects, relate more effectively with others, set goals, manage time and stress, and create a balanced and productive life.