Which Statement Concerning Drawings by Partners in a Partnership Is

question 42

Multiple Choice

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

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

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