The Variable Capital Balances Method (Method 1), Requires the Profit

question 21

Multiple Choice

The variable capital balances method (method 1) , requires the profit or loss and partner's drawings to be closed off to each partner's:

• A) capital account.
• B) cash account.
• C) profit or loss summary account.
• D) retained earnings accounts.

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Definitions:

Full-Time

Employment in which a person works a minimum number of hours defined as such by their employer, typically for five days a week.

Extended Family

A family that extends beyond the nuclear family, including grandparents, aunts, uncles, and other relatives, who all live nearby or in one household.

Immigrated

The action of moving to a new country or region with the intention of settling and living there permanently.

Dual-Income

Pertaining to households in which two adults contribute financially through employment.