Salary and Interest Allowances for Partners Are

question 73

Multiple Choice

Salary and interest allowances for partners are:

• A)expenses on the income statement.
• B)liabilities on the balance sheet.
• C)a means of dividing net income or loss between the partners.
• D)None of these answers are correct.

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Definitions:

Excessive Amounts

Quantities that exceed what is normal, necessary, or reasonable.

Metabolism

The complex of life-sustaining chemical reactions in organisms, involving the processing or conversion of substances.

Metabolic Processes

The chemical reactions that occur within a living organism in order to maintain life, including digestion and the production of energy.

BMR

Basal metabolic rate, which is the rate of energy expenditure per unit time by endothermic animals at rest.