When Preparing the Closing Entries for a Partnership at the End

question 42

Multiple Choice

When preparing the closing entries for a partnership at the end of the accounting period which of these statements is true? Assume that capital account balances are not fixed.

• A)Income and expenses are closed to the capital accounts
• B)The profit and loss summary account is closed to the retained earnings accounts
• C)The retained earnings account is closed to the profit and loss summary account
• D)The drawings accounts are closed to the capital accounts

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Definitions:

Levels

The different values or categories of a factor in an experiment or statistical analysis.

Observations

Data points or individual pieces of data collected through experiments, surveys, or other methods of research.

ANOVA Design

A statistical method and design of experiments aimed at comparing the means of three or more groups to understand if at least one group mean differs significantly.

Interaction

In statistics and research, the mutual or reciprocal actions or influence between variables or factors.