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

Under the Revised Uniform Partnership Agreement, a. unsatisfied partnership creditors share pro rata with personal creditors in the assets of the partner’s estate. b. unsatisfied partnership creditors have first priority against partnership assets. c. unsatisfied personal creditors have first priority against partnership assets. d. None of the above.
devrat
How do the asset and liability sections of the balance sheet differ for a partnership versus other forms of businesses (corporation, sole proprietorship)? Question 1 options: The equity section reports a separate capital account for each partner. The assets and liability sections do not differ between partnerships and other forms of business. The assets and liabilities are assigned to the individual partners. The assets tend to be higher and the liabilities tend to be lower for a partnership.
Which of the following is a correct definition of a concept related to partnership taxation? A partner's capital-sharing ratio is defined as the percentage of partnership assets (capital) that would be allocated to the partner upon liquidation of the partnership. A special allocation is defined as an amount that could differently affect the tax liabilities of two or more partners. The partnership's outside basis is defined as the sum of each partner's capital account balance. The aggregate concept treats partners and partnerships as separate units and gives the partnership its own tax personality.

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