Which of the Following Statements Relating to Financial Reports for a Partnership

question 60

Multiple Choice

Which of the following statements relating to financial reports for a partnership is incorrect?

• A) Partners' salaries are normally treated as an allocation of profit.
• B) Each individual partner's equity in the business is reported separately.
• C) Interest on capital contributions is treated as an allocation of profits.
• D) Income tax expense is deducted from the partnership profit at the end of the income statement.

---

Definitions:

Chicken

A domesticated bird raised for its meat and eggs, one of the most common sources of protein in diets worldwide.

Optimal Consumption

The point at which a consumer maximizes their satisfaction or utility from consumption under their budget constraints.

Marginal Utility

Marginal utility is the additional satisfaction or utility that a consumer receives from consuming one more unit of a good or service.

Dollar Spent

A unit of expenditure, often used to discuss the impact or value of spending in terms of economic activity or investment.