Which Statement Concerning Drawings by Partners in a Partnership Is

question 20

Multiple Choice

Which statement concerning drawings by partners in a partnership is correct?

• A) Drawings are generally regarded as withdrawals of future profits.
• B) Drawings are taken into account when calculating the final distribution of profit between the partners.
• C) Interest is charged on drawings if the partnership agreement is silent on the matter.
• D) Charging interest on drawings acts as an incentive to partners to withdraw money from the partnership.

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Definitions:

Daily Log

A record maintained on a daily basis, listing activities, completed tasks, and noteworthy events, often used for personal or professional tracking.

Follow-up Correspondence

The exchange of communication that occurs after an initial meeting or conversation, aiming to continue dialogue or confirm outcomes.

Address

A specific location or a set of descriptive details that identifies where a person lives or an organization is situated.

Initials

The first letters of a person's first, middle, and sometimes last names, often used to sign documents in a simplified form.