5.9k views
0 votes
The balance sheet of a partnership will:_________

a. report retained earnings below the partnership capital accounts.
b. show a separate capital account for each partner.
c. show a separate drawing account for each partner.
d. show the amount of income that was distributed to each partner.

1 Answer

4 votes

Answer:

b. show a separate capital account for each partner.

Step-by-step explanation:

A partnership can be defined as a type of business ownership in which two or more individuals come together to start up a business and share the profits made together.

Balance sheet refers to a document that contains financial information about assets, liability, and equity.

A current asset can be defined as all of the assets that are being owned by a company or business entity and are expected to be converted into their cash equivalent through sales or use within a period of one year of its date on the organization's balance sheet.

In Financial accounting, the balance sheet of a partnership is typically designed to show a separate capital account for each partner. Thus, if there are four or more people in a partnership form of business, each of them would have a separate capital account in the balance sheet of the partnership.

User Anil Meena
by
7.7k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.