Which of the Following Statements Is True About a Partnership

Multiple Choice

Which of the following statements is true about a partnership?

A) One capital and one drawing account is used for each partnership.
B) The capital account is used to record each partner's investment and that partner's designated share of the earnings.
C) Partnerships are subject to separate business income taxes.
D) The drawing account is closed to retained earnings at the end of the perioD.The capital account in a partnership keeps track of each partner's capital balance and is affected by partner investments and withdrawals as well as net income.