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
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Who contributes capital to a partnership?
Two or more people
Only one person
Banks and financial institutions
Government agencies
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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
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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
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Define a partnership account.
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What is the significance of a partnership account?
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