Which of These Is Not a Feature of the Fixed

Multiple Choice

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 or loss distribution account is closed to the partner's retained earnings accounts.