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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a currency valuation system that allows the value of the currency to fluctuate according to the foreign exchange market.