Which of the Following Statements Is TRUE for a Limited

question 117

Multiple Choice

Which of the following statements is TRUE for a limited liability partnership?

• A)The partnership pays no federal income taxes.
• B)Only the limited partners pay federal income taxes on their shares of the partnership's profits.
• C)Only the general partner pays federal income taxes on his or her share of the partnership's profits.
• D)Only the members pay federal income taxes on their shares of the partnership's profits.

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Definitions:

Deposits In Transit

Deposits that were made by customers of a bank but did not reach, or were not processed by, the bank before the preparation of the bank statement.

Bank Collections

The process of banks acting as intermediaries to collect and process payments, such as checks or drafts, on behalf of clients.

Credit Memorandum

A document issued by a seller to acknowledge a reduction in the amount that a buyer owes, often due to a return or refund.

Cash Account

An account reflecting the amount of cash available, including all receipts and payments of cash.