6. If the business incurred a loss for the period, and there is only a profit sharing agreement in the partnership contract, the losses is distributed to the partners based on their original capital contributions ratio. O True O False

6. If the business incurred a loss for the period, and there is only a profit sharing agreement in the partnership contract, the losses is distributed to the partners based on their original capital contributions ratio. O True O False

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter19: Accounting For Partnerships

Section: Chapter Questions

Problem 3MC

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6. If the business incurred a loss for the period, and there is only a profit sharing agreement in the
partnership contract, the losses is distributed to the partners based on their original capital
contributions ratio.
O True
O False

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