Details of the Division of Net Income for a Partnership

question 27

Multiple Choice

Details of the division of net income for a partnership should be disclosed in the

• A) Assets section of the balance sheet
• B) partners' subsidiary ledger
• C) statement of cash flows
• D) partnership income statement

---

Definitions:

Job-order Costing

A cost accounting system that assigns manufacturing costs to an individual product or batches of products, ideal for customized orders.

Work in Process

Inventory that includes goods partially completed but not yet ready for sale, situated between raw materials and finished goods.

Direct Labour

The labor costs directly associated with the production of goods, easily traceable to the manufacturing process.

Direct Materials

Fundamental elements that can be directly connected to the manufacturing of a specific item.