15. Which statement(s) is incorrect? * -Income summary account is closed directly to capital account if the intention of the partners is to make profit or loss part of permanent capital. -Beginning capital refers to the initial investment of a partner upon formation of the partnership. -A capitalist-industrial partner shares on the partnership profits as well as on partnership losses. -The salary to partners and/or interest on their capital is still distributed in accordance with what has been agreed upon by the partners even if the net income is not adequate, unless the partners include a qualifying clause to that effect. -answer not given
15. Which statement(s) is incorrect? * -Income summary account is closed directly to capital account if the intention of the partners is to make profit or loss part of permanent capital. -Beginning capital refers to the initial investment of a partner upon formation of the partnership. -A capitalist-industrial partner shares on the partnership profits as well as on partnership losses. -The salary to partners and/or interest on their capital is still distributed in accordance with what has been agreed upon by the partners even if the net income is not adequate, unless the partners include a qualifying clause to that effect. -answer not given
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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15. Which statement(s) is incorrect? *
-Income summary account is closed directly to capital account if the intention of the partners is to make profit or loss part of permanent capital.
-Beginning capital refers to the initial investment of a partner upon formation of the partnership.
-A capitalist-industrial partner shares on the partnership profits as well as on partnership losses.
-The salary to partners and/or interest on their capital is still distributed in accordance with what has been agreed upon by the partners even if the net income is not adequate, unless the partners include a qualifying clause to that effect.
-answer not given
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