Partnership accounting is the same as accounting for:
A)A sole proprietorship.
B)A corporation.
C)A sole proprietorship,except that separate capital and withdrawal accounts are kept for each partner.
D)An S corporation.
E)A corporation,except that retained earnings is used to keep track of partners' withdrawals.

Question

Quizplus · Accepted Answer

Partnership accounting follows the same principles as accounting for a sole proprietorship, but with the addition of separate capital and withdrawal accounts for each partner. This allows for the tracking of each partner's contributions to and withdrawals from the partnership. Accounting for a corporation would involve a different set of principles and accounts, and the use of retained earnings would not apply to partnerships.

Partnership Accounting Is the Same as Accounting For