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:

Low Self-esteem

A condition characterized by a lack of confidence and feeling unworthy or incapable, often reflecting a negative view of oneself.

Self-esteem

A person’s personal assessment of their own value or worth from a subjective standpoint.

Vicious Cycle

A sequence of reciprocal cause and effect in which two or more elements intensify and aggravate each other, leading to a worsening situation.

Negative Self-concept

The perception or image a person has of themselves that is generally characterized by lack of confidence and feelings of inadequacy or undesirability.