Which of the Following Is a Factor That Should Be

question 59

Multiple Choice

Which of the following is a factor that should be included in a partnership agreement?

• A) the basis for sharing profit or loss
• B) procedures for the withdrawal, or addition, of a partner
• C) the rights and duties of all partners
• D) all of the above

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Definitions:

Gross Method

An accounting practice for recording the full invoice amount of a sale without deducting any discounts offered.

Merchandise Return

The process by which a customer returns previously purchased merchandise back to the seller, often due to defects or dissatisfaction.

Perpetual Inventory System

A technique in inventory accounting that uses computerized point-of-sale systems and enterprise asset management software for the immediate recording of inventory transactions.

Gross Method

An accounting practice where the purchase discount is not recorded at the time of purchase but is instead recognized when the discount is actually taken.