A Partnership Agreement Must Be in Writing If

question 45

Multiple Choice

A partnership agreement must be in writing if

• A) one of the partners is a minor.
• B) there are more than two partners.
• C) the partnership is to last three years.
• D) the partnership is for professional purposes.

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Definitions:

Sales Returns

Goods returned by customers to the seller for a refund or credit, often due to defects or dissatisfaction.

Allowances

Amounts deducted from gross revenue or expenses, accounting for items like returns, damaged goods, or discounts.

Operating Cycles

The period it takes for a company to purchase inventory, sell it, and convert the sale into cash.

Financial Statements

Reports that provide an overview of a company's financial condition, including balance sheet, income statement, and cash flow statement.