How does partnership accounting differ from corporate accounting? The matching principle is not considered appropriate for partnership accounting. Revenues are recognized at a different time by a partnership than is appropriate for a corporation. Individual capital accounts replace the contributed capital and retained earnings balances found in corporate accounting. Partnerships report all assets at fair value as of the latest balance sheet date.
How does partnership accounting differ from corporate accounting? The matching principle is not considered appropriate for partnership accounting. Revenues are recognized at a different time by a partnership than is appropriate for a corporation. Individual capital accounts replace the contributed capital and retained earnings balances found in corporate accounting. Partnerships report all assets at fair value as of the latest balance sheet date.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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How does
- The matching principle is not considered appropriate for partnership accounting.
- Revenues are recognized at a different time by a partnership than is appropriate for a corporation.
- Individual capital accounts replace the contributed capital and
retained earnings balances found in corporate accounting. - Partnerships report all assets at fair value as of the latest
balance sheet date.
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