When Preparing the Closing Entries for a Partnership at the End

question 3

Multiple Choice

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

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

---

Definitions:

Inguinal Area

The region of the lower abdomen adjacent to the groin where the thigh meets the pelvis.

Well-Person Exam

A preventive health check designed for individuals who do not currently display any symptoms of disease, to ensure ongoing health and wellness.

Hernias

Occurrences where part of an organ is displaced and protrudes through the wall of the cavity containing it, often due to weakness or tear in the wall.

Babinski Reflex

A reflex action in which the big toe extends upward and the other toes fan out when the sole of the foot is stimulated, indicative of neurological issues.