An Expense That Would Not Appear in a Partnership Income

question 37

Multiple Choice

An expense that would not appear in a partnership income statement is:

• A) interest expense.
• B) depreciation expense.
• C) income tax expense.
• D) advertising expense.

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Definitions:

Accounting System

A systematic process of recording, analyzing, summarizing, and reporting the financial transactions of a business or individual.

Adjusting Entries

Journal entries made at the end of an accounting period to update account balances to reflect accurate financial activity and balances.

Prepaid Items

Expenses paid in advance for goods or services to be received or used in the future, such as insurance or rent.

Accrued Expenses

Costs that have been incurred but not yet paid or documented in the accounting records during a specific accounting period.