Which of these is not a feature of the fixed capital balances method method 2) of accounting for partnership equity?
A) Each partner has two permanent equity accounts,a capital account and a retained earnings account
B) Apart from the initial investment very few adjustments are made to the capital account
C) Partner's drawings are closed to their capital accounts
D) The profit and loss distribution account is closed to the partner's retained earnings accounts
Correct Answer:
Verified
Q1: Fatima and Jaddon have capital balances of
Q2: Smiles and Scowls,two sole traders form
Q3: With the variable capital balances method method
Q4: Internally generated goodwill is not recorded by
Q5: When assets are contributed to a partnership
Q7: If the variable capital balances method method
Q8: It is agreed in the partnership agreement
Q9: Douglas and Johnson each invested $50 000
Q10: Mutual agency means:
A)Unlimited liability for partnership debts
B)Sharing
Q11: Fair value is defined in the accounting
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents