When Preparing the Closing Entries for a Partnership at the End

question 47

Multiple Choice

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

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

Understand the process of discounting and its applications in financial computations.

Differentiate between various financial tables and their applications in time value of money computations.

Calculate the present value of a single sum and annuity.

Evaluate investment opportunities by determining present and future values.

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