In a partnership,the entry to close net income ________.
A) increases assets
B) increases liabilities
C) decreases partners' capital accounts
D) decreases the Income Summary account

Question

Quizplus · Accepted Answer

The entry to close net income in a partnership involves transferring the balance of the Income Summary account to each partner's capital account, which decreases the Income Summary account. Therefore, the correct answer is D, as it decreases the Income Summary account. None of the other options are affected by the entry to close net income in a partnership.

In a Partnership,the Entry to Close Net Income ________