On a Partnership's Form 1065, Which of the Following Statements

question 22

Multiple Choice

On a partnership's Form 1065, which of the following statements is not true?

• A) The partnership reconciles its net income (including separately stated items) to book income on Schedule M-1 or M-3.
• B) The partnership balance sheet on Schedule L is generally presented on a financial (book) basis.
• C) All partnership income and expense items are reported on Form 1065, page 1.
• D) The partnership's equivalent of taxable income is reported in the "Analysis of Income (Loss)."
• E) All of the above statements are true.

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Definitions:

GAAP

Generally Accepted Accounting Principles, standard guidelines and procedures for financial accounting and reporting in the U.S.

Indirect Method

A method used in cash flow statements where net income is adjusted for items that affected reported net income but did not result in an actual cash flow.

Direct Method

A cash flow statement presentation that lists actual cash inflows and outflows from operating activities.

FASB

The Financial Accounting Standards Board (FASB) is an organization responsible for establishing and improving financial accounting standards in the United States.