A Partnership That Is a Reporting Entity Must Produce Which

question 31

Multiple Choice

A partnership that is a reporting entity must produce which of these financial statements?
i. Income statement
ii. Balance sheet
iii. Statement of cash flows
iv. Statement of changes in partners' equity

• A) i, ii, iii
• B) i, iii
• C) i, ii, iii, iv
• D) None of these statements

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Definitions:

Normal Good

A type of good for which demand increases when income increases, and falls when income decreases, but price remains constant.

Inferior Good

A type of good for which demand decreases as the income of individuals or the economy increases, opposite to what is observed with a normal good.

Law of Supply

It states that, all else equal, an increase in the price of a good or service will lead to an increase in the quantity supplied.

Law of Demand

An economic principle stating that the quantity demanded of a good decreases as its price increases, all else being equal, and vice versa.