Which of the Following Statements Is True

question 82

Multiple Choice

Which of the following statements is true?

• A)Partners are employees of the partnership.
• B)Salaries to partners are expenses on the partnership income statement.
• C)Salary allowances usually reflect the relative value of services provided by partners.
• D)Salary allowances are expenses.
• E)Interest allowances are expenses.

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Definitions:

Goodwill

An intangible asset representing the excess value paid for a company over its book value during an acquisition, attributable to factors like reputation, brand, or customer relations.

Total Share

Total share commonly refers to the total number of issued shares of a company’s stock, representing ownership in the company.

Personal Use

Refers to the utilization of goods, services, or assets for individual, non-commercial purposes.