Which of the following is a major point of difference between accounting for a corporation versus accounting for a partnership?
A)Recording sales revenue.
B)Recording office supplies used.
C)Recording withdrawals of the owners.
D)Recording rent expense.

Question

Quizplus · Accepted Answer

The major point of difference between accounting for a corporation and accounting for a partnership is the recording of withdrawals of the owners. In a partnership, each partner can withdraw funds for personal use, and these withdrawals are recorded as a reduction in the partner's capital account. In a corporation, the owners (shareholders) do not withdraw funds directly from the company; instead, they receive dividends from the company's profits. Therefore, the recording of withdrawals is not relevant in the accounting for a corporation.

Which of the Following Is a Major Point of Difference