The Entry to Record a Partner's Salary Allowance Consists of a Debit

question 43

Multiple Choice

The entry to record a partner's salary allowance consists of a debit to

• A) the partner's capital account and a credit to Cash.
• B) Salaries Expense and a credit to the partner's drawing account.
• C) Income Summary and a credit to the partner's capital account.
• D) Income Summary and a credit to the partner's drawing account.

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Definitions:

Sufficient Consideration

The value that is deemed adequate by the parties involved and law as part of an agreement or contract, ensuring it is binding and enforceable.

CISG

The United Nations Convention on Contracts for the International Sale of Goods, a treaty that provides a uniform international sales law.

Consideration

Something of value exchanged between parties in a contract that is necessary for the agreement to be legally binding, such as money, services, or promises.

UCC

Short for Uniform Commercial Code, it is a set of laws that provide legal framework for commercial transactions in the United States.