In Accounting for a Partnership, Capital and Drawings Accounts Are

question 49

Multiple Choice

In accounting for a partnership, capital and drawings accounts are:

• A) separate for all shareholders.
• B) separate for each partner.
• C) part of retained earnings.
• D) combined for all partners.

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Definitions:

Core Purpose

The fundamental reason a company exists beyond just making money, often reflecting its values and mission.

External Stakeholder

Individuals or entities outside of a company that have an interest or concern in the business operations, such as customers, suppliers, and the community.

Supplier

An entity that provides goods or services to another organization, typically within a supply chain or production process.

Shareholder

An individual or entity that owns shares in a corporation, making them partial owners and entitling them to dividends and certain rights regarding company governance.