Which of the Following Accounts Would Appear on a Partnership's

question 42

Multiple Choice

Which of the following accounts would appear on a partnership's financial statements, but not on a corporation's financial statement?

• A)Drawings
• B)Cost of goods sold
• C)Wage expense
• D)Income tax expense

---

Definitions:

Consumer Surplus

The gap between the total amount consumers are prepared and able to spend for a product or service versus what they genuinely spend.

Maximum Price

The highest price that can legally be charged for a good or service, often set by government regulations to protect consumers from excessively high prices.

Market Failure

A situation in which the allocation of goods and services is not efficient, often leading to a net social welfare loss.

Consumer Surplus

The discrepancy in the overall amount consumers are inclined and able to expend on a product or service versus what they actually fork out.