Which of the Following Statements About a Partnership Is Correct

question 73

Multiple Choice

Which of the following statements about a partnership is correct?

• A) The personal assets of a partner are included in the partnership accounting records.
• B) A partnership is not required to file an information tax return.
• C) Each partner's share of income is taxable to the partnership.
• D) A partnership represents an accounting entity for financial reporting purposes.

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Definitions:

Hierarchy

A system or organization in which people or groups are ranked one above the other according to status or authority.

Traditional

Adhering to or advocating for the preservation of established customs, ideas, or systems, usually in opposition to modern innovations or changes.

Procedures

Established ways of performing tasks or activities in organized settings, often following set rules or guidelines to achieve specific objectives.

Bureaucratic

Pertaining to the complex administrative structure and processes of organizations or governments, characterized by formal rules and hierarchy.