Which of the Following Statements Is True About the Uniform

question 14

Multiple Choice

Which of the following statements is true about the Uniform Partnership Act?

• A) A partnership agreement is generally enforceable, except in situations where its terms differ from the provisions of the act.
• B) The act can be thought of as a "gap-filling" statute that applies when a partnership has no partnership agreement provision addressing a particular issue.
• C) The act requires that partnership agreements be in writing in order to be enforceable.
• D) The act prohibits individuals from varying its terms in partnership agreements.

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Definitions:

Variable Costing

An accounting method that only allocates variable costs to products, excluding fixed overhead costs.

Net Operating Income

The profit generated from a company's core business operations, excluding expenses and revenues that are unrelated to the primary activities of the business.

Absorption Costing

A method of accounting for costs in which all costs of manufacturing a product (including variable and fixed overhead costs) are considered product costs.

Net Operating Income

The profit generated from a company's normal business operations, excluding expenses such as taxes and interest charges.