Which of the Following Is Not a Disclosure That Should

question 124

Multiple Choice

Which of the following is not a disclosure that should be part of a partnership agreement?

• A) The way profits will be divided among partners.
• B) The list of personal assets of each partner.
• C) The specific responsibilities of each partner.
• D) The salaries and drawing accounts of each partner.

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Definitions:

Net Sales

The revenue from sales transactions after deducting returns, allowances for damaged or missing goods, and discounts.

Multiple-Step

A method of preparing an income statement that separates operating revenues and expenses from non-operating ones, showing multiple levels of income calculation.

Single-Step

Single-step is a simplified method of preparing income statements that calculates net income or loss by subtracting total expenses from total revenues in one step.

Inventory

The raw materials, work-in-process products, and finished goods that are considered to be the portion of a business’s assets that are ready or will be ready for sale.