Partnership accounting:
A) Uses a withdrawals account for each partner.
B) Allocates losses according to the partnership agreement.
C) Uses a capital account for each partner.
D) Allocates profit according to the partnership agreement.
E) All of these answers are correct.

Question

Quizplus · Accepted Answer

Partnership accounting involves using a withdrawals account and a capital account for each partner, and it allocates both profits and losses according to the partnership agreement.

Partnership Accounting