Which of the Following Statements Is True About Distribution of Partners

question 57

Multiple Choice

Which of the following statements is true about distribution of partners earning?

• A)The interest on capital reduces net income on the income statement
• B)The salary component is reported as salary expense on the income statement.
• C)The interest and salary allocations have no effect on cash flows
• D)Owners' equity is reduced by the salary allocation.

---

Definitions:

Opinion Letter

A document drafted by an attorney providing a detailed analysis and concluding viewpoint on a specific legal issue, often requested by clients for clarity on legal standings.

Legal Findings

The conclusions or determinations made by a judge or jury regarding the facts of a case, often leading to a judgment or verdict.

Core Of Legal Memo

The central part of a legal memorandum that outlines the key legal arguments, supporting evidence, and applicable law.

Discussion Section

A segment of an academic paper or course where detailed analysis, interpretation, or debate on a topic occurs.