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:

Merchant

An individual or company engaged in the business of selling goods or services.

UCC Article 2

Part of the Uniform Commercial Code that governs the sale of goods in the United States.

Camping Store

A retail establishment that specializes in selling equipment and supplies for camping.

Interpreted

The process of explaining or understanding the meaning of something, often used in the context of translating languages or analyzing legal texts.