Which of the Following Statements Is Correct with Regards to Closing

question 19

Multiple Choice

Which of the following statements is correct with regards to closing the accounts of a partnership?

• A) Partners are owners; therefore partner's salaries must be treated as drawings.
• B) Partnership profit is credited to each partner's capital account according to the profit sharing agreement.
• C) Partnership accounts use a retained earnings account instead of a profit or loss summary account.
• D) A partnership loss for the period is carried forward and is not transferred to the partner's capital accounts.

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Definitions:

Cultural Preferences

The tendencies of individuals from a particular culture to favor certain behaviors, dietary choices, health practices, or beliefs.

Ineffective Breathing Pattern

A condition characterized by an inadequate or unsatisfactory respiratory process, resulting in insufficient ventilation.

Alveolar-capillary Membrane

The thin tissue layer in the lungs where the exchange of oxygen and carbon dioxide takes place between air spaces and blood.

Pneumonia

A respiratory condition characterized by inflammation of the lungs, usually caused by infection with bacteria, viruses, or other organisms.