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

Question

Quizplus · Accepted Answer

Partnership accounting is similar to accounting for a sole proprietorship, except that separate capital and withdrawal accounts are kept for each partner. This is because in a partnership, there is more than one owner and each partner's investment and withdrawals need to be tracked separately. Partnership accounting is different from accounting for a corporation, as corporations have shareholders and more complex ownership structures.

Partnership Accounting Is the Same as Accounting For