The Withdrawals Account of Each Partner Is

question 78

Multiple Choice

The withdrawals account of each partner is:

• A) Closed to that partner's capital account with a credit.
• B) Closed to that partner's capital account with a debit.
• C) A permanent account that is not closed.
• D) Credited with that partner's share of net income.
• E) Debited with that partner's share of net loss.

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Definitions:

Helpline Costs

Expenses incurred in the operation of a support service for customers, such as salaries for help desk staff and telecommunication charges.

Calls

Financial instruments giving the holder the right to buy a stock or commodity at a specified price within a specific time period.

Variable Costs

Expenses that vary directly with the level of production or output.

Variable Cost

Expenses that change in direct proportion to the amount of business or production activity.