Answered: Which sentence is not true? Select…

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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Question

Which sentence is not true?

Select one:

a. In Partnership, the ownership divided into shares of stock.

b. Profit or loss has an effect on the owner's equity.

c. Companies usually prepare 4 financial statements.

d. Assets are resources for providing future services or benefits.

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Expert Solution

Step 1

Partnership:

Minimum Two number of members required to form a business called Partnership.

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