Which of the following statements is true about a partnership?
A)One capital and drawing account is used for each partnership.
B)The capital account is used to record each partner's investment and their designated share of the earnings.
C)Partnerships are subject to income taxes.
D)The drawings account is closed to retained earnings at the end of the period.

Question

Quizplus · Accepted Answer

The capital account in a partnership keeps track of each partner's capital balance and is affected by partner investments and withdrawals as well as net income.

Which of the Following Statements Is True About a Partnership