Which of the Following Is Incorrect with Respect the Responsibilities

question 95

Multiple Choice

Which of the following is incorrect with respect the responsibilities of partners to each other?

• A) Each partner owes the other partners a fiduciary duty.
• B) Partners are free to compete with the partnership providing they do it on their own time.
• C) Any information that one partner learns because of his position in the partnership must be used for the benefit of the partnership, not for personal use.
• D) Unless the partners have agreed otherwise, profits and losses are shared equally.
• E) Unless the partners have agreed otherwise, partners' expenses are to be reimbursed.

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Definitions:

Balance Sheet

A summary that encapsulates a business's liabilities, assets, and shareholders' equity at a distinct date.

Worksheet

A paper or electronic document with rows and columns, used for organizing, calculating, and presenting financial information.

Depreciation Expense

An accounting method of allocating the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.

Prepaid Insurance

An asset account that represents insurance premiums paid in advance, which have not yet expired at the time of the balance sheet.