Which of the Following Is Not a Feature of the Variable

Multiple Choice

Which of the following is not a feature of the variable capital balances method (method 1) of accounting for partnership equity?

A) Interest on capital is credited to the partner's retained earnings accounts.
B) Each partner has one permanent capital account.
C) Partner's drawings are closed to their capital accounts.
D) The profit or loss distribution account is closed to the partner's capital accounts.