Which Statement Relating to Financial Reports for a Partnership Is

question 30

Multiple Choice

Which statement relating to financial reports for a partnership is not true?

• A) Partners' salaries are normally treated as an allocation of profit.
• B) Income tax expense is deducted from the partnership profit at the end of the income statement.
• C) Each individual partner's equity in the business is reported separately.
• D) Interest on capital contributions is treated as an allocation of profits.

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Definitions:

Face-Saving

A social or psychological strategy employed to maintain dignity, avoid embarrassment, or preserve reputation after a mistake or failure.

Noise

In communication, unwanted or disruptive sounds that interfere with the reception of the message being sent.

Media Richness

The ability of a communication medium to effectively convey information and promote understanding.

Encoding

The process of converting information into a form that can be stored, processed, or transmitted, often used in the context of memory or data transfer.