Partnership Account: Meaning/Definition - SS2 Accounting Past Questions and Answers - page 1
What does a partnership account show?
The financial transactions and balances of a partnership
The profits and losses of a single-owner business
The expenses and revenues of a partnership
The financial statements of a corporation
Who contributes capital to a partnership?
Two or more people
Only one person
Banks and financial institutions
Government agencies
What does the capital balance of a partner in a partnership account represent?
The amount of money or assets that each partner has invested in the partnership
The amount of profit earned by the partner
The amount of drawings made by the partner
The amount of liabilities of the partner
Why is a partnership account important?
It helps partners keep track of their financial position in the business
It provides a basis for sharing profits and losses
It helps determine the value of partnership interest
All of the above
Define a partnership account.
A partnership account is a financial record that shows the financial transactions and balances of a partnership.
What is the significance of a partnership account?
A partnership account is significant because it helps partners keep track of their financial position in the business, provides a basis for sharing profits and losses, and helps determine the value of partnership interest.