Which of the following statements iscorrect? *Salaries to partners and interest onpartners' capital are expenses of thepartnership.Salaries to partners are expenses of thepartnership but not interest on partners'capital.Interest on partners' capital is an expenseO of the partnership but not salaries topartners.Neither salaries to partners nor interest onpartners' capital are expenses of thepartnership.

Salaries are expenses given to the partners for the running and efficiently managing the business.…

Answered: Which of the following statements is…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

Assess the truth of this statement: For a partnership entity, partnership equity is composed of one capital account for each partner. Group of answer choices This statement is true. This statement is false. There is not enough information to determine whether or not this statement is true. This statement is not applicable to accounting concepts.
Which of the following is not a characteristic of a partnership? O It has unlimited liability. O There is ease of transferring ownership. O There is co-ownership of property. O It can be easily dissolved.
Plz solve
Q.1) How partnership differs from single proprietorship? Q.2) How limited and general partners differ from each other?
Distinguish between admission of a new partner to a partnership (a) via the acquisition of an interest from another partner and (b) through the transfer of assets to the partnership.
The following are rights of a partner in a partnership, except one: Right to compensation Right to information Right to return of capital Right to agency
When a partner invests noncash assets in a partnership, the assets should be recorded at their O book value. carrying value. O fair market value. O original cost.
Which of the following apply to a partnership that consists solely of general partners? I. Double taxation of partnership profits. II. Limited partnership life. III. Active involvement in the firm by all the partners. IV. Unlimited personal liability for all partnership debts. Group of answer choices II and III only. II only. II, III, and IV only. I and II only. I, II, and IV only.
S1: All assets invested in the partnership become the property of the partners and not the partnership because in partnership, there is co-ownership.S2: Each partner has a proprietary interest in the partnership both statements are true both are false only S1 is true only S2 is true.
a) How is a sec 707(a) payment to a partners for service treated by the partners and the partnership? when will it be recongnise by a cash basis partner? when will it be deducted by a partnership? b) How is a guaranteed payment for services treated by the partner and the partnership? What is it recongnized or deducted?
Which of the following is an election or calculation made by the partner rather than the partnership? Calculation of a section 199A(qualified business income) deduction amount. Claiming a section 179 deduction related to property acquired by the partnership. Tax treatment (e.g., credit, amortization) of research and experimental costs. The partnership's accounting method (e.g.. cash, accrual).
Required Information [The following Information applies to the questions displayed below.] A = The amount of tangible assets contributed by the new partner into the partnership B=The amount of capital credited to the new partner C= Total capital of the partnership before the admission of a new partner D= Total capital of the partnership after the admission of a new partner Refer to the above information. Which statement below is correct if goodwill of the old partners is recognized upon the contribution of assets into the partnership by a new partner? Multiple Choice B=A and DA and D

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