Which of the Following Does NOT Need to Occur for a Partnership

question 23

Multiple Choice

Which of the following does NOT need to occur for a partnership allocation to have substantial economic effect?

• A)An adjustment must be made in the partner's capital account
• B)Liquidation proceeds must be distributed in accordance with capital accounts
• C)Profits and losses must be allocated to different partners in proportion to their equity contribution
• D)Following the distribution of sale proceeds,partners must be liable to the partnership to restore any deficit in their capital account

---

Definitions:

Direct Materials Price Variance

The difference between the actual cost and standard cost of materials used in production, highlighting efficiency in procurement.

Expected Total Sales

The forecasted amount of sales a business anticipates to achieve in a specific period, calculated based on market research and historical sales data.

Average Price

The mean cost of goods or services calculated over a specific period or set of units, used to determine general price levels.

Standard Cost System

A cost accounting system that uses predetermined costs for materials, labor, and overhead charges to control actual costs and measure variances.