A partnership and a corporation differ in that:
A) a partnership is a legal entity, while a corporation is not.
B) the equity sections of partnership and corporation balance sheets report different items.
C) partnerships always have more cash than corporations.
D) a corporation has an income statement and a partnership does not.

Question

Quizplus · Accepted Answer

The equity sections of partnership and corporation balance sheets report different items because partnerships have capital accounts for each partner, while corporations have common stock, additional paid-in capital, and retained earnings.

A Partnership and a Corporation Differ in That