Which of the Following Statements Is True Concerning the Treatment

question 32

Multiple Choice

Which of the following statements is true concerning the treatment of salaries in partnership accounting?

• A)Partner salaries may be used to allocate profits and losses; they are not considered expenses of the partnership
• B)Partner salaries are equal to the annual partner draw.
• C)The salary of a partner is treated in the same manner as salaries of corporate employees.
• D)Partner salaries are directly closed to the capital account.

---

Definitions:

Performance Boost

An improvement in performance, often due to certain interventions, motivations, or conditions.

Dual Process Approach

A cognitive theory that proposes there are two distinct systems in the mind, one intuitive and fast, and the other deliberative and slow, influencing decision making and reasoning.

Reflective Processes

Cognitive operations that involve deliberate, conscious thinking and evaluation, typically guiding decision-making and behavior based on reflection.

Coordinated Processes

Activities or systems that are managed in a way that ensures they operate harmoniously and efficiently towards a common goal.