In a Partnership,all Profits and Losses Flow Through Each Partner's

question 4

Multiple Choice

In a partnership,all profits and losses flow through each partner's ________.

• A) tax returns
• B) savings
• C) liabilities
• D) investments
• E) mortgages

---

Definitions:

Marketable Securities

Financial instruments that can be easily converted into cash, such as stocks or bonds.

Operating Activities Section

A component of the cash flow statement showing cash inflows and outflows related to the primary business activities.

Direct Method

A way of preparing a cash flow statement where actual cash flows from operating activities are listed directly.

Capital Asset

An asset of significant value owned by a business or individual for a long period, usually used in the production of goods or services.