Which of the Following Is Not a Feature of the Fixed

Multiple Choice

Which of the following is not a feature of the fixed capital balances method 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) The partners retained earnings accounts include their proportions of the profit of loss for the period.
D) Partner's drawings accounts are closed at the end of the accounting period to their capital accounts.