Which of the Following Statements Is Correct

question 15

Multiple Choice

Which of the following statements is correct?

• A) Salaries to partners and interest on partners' capital are expenses of the partnership.
• B) Salaries to partners are expenses of the partnership but not interest on partners' capital.
• C) Interest on partners' capital is an expense of the partnership but not salaries to partners.
• D) Neither salaries to partners nor interest on partners' capital are expenses of the partnership.

---

Definitions:

Agreement

One of the four elements necessary for a contract; consists of an offer made by one party, the offeror, and the acceptance of the offer by another party, the offeree.

Principal

A principal can refer to the main party in a transaction or agreement, often used to denote the primary source of obligation or responsibility.

Unauthorized Departure

Leaving a place or position without permission or without following the proper protocols.

Satellite Dish

A type of parabolic antenna designed to receive or transmit information by radio waves to or from a communication satellite.