Partnership accounting does not:
A)Use a capital account for each partner.
B)Use a withdrawals account for each partner.
C)Allocate net income to each partner according to the partnership agreement.
D)Allocate net loss to each partner according to the partnership agreement.
E)Tax the business entity.

Question

Quizplus · Accepted Answer

Partnership accounting does not involve taxation of the business entity. Instead, the income or losses are allocated to each partner and are reported on their individual tax returns.

Partnership Accounting Does Not