When the final financial statements are prepared the profit or loss allocation for a partnership is normally shown in the:
A) statement of changes in partner's equity.
B) profit or loss allocation statement.
C) profit distribution statement.
D) cash distribution statement.

Question

Quizplus · Accepted Answer

The profit or loss allocation for a partnership is shown in the statement of changes in partner's equity as it reflects any changes in the partner's capital accounts due to profits or losses. The other options listed are not commonly used for this purpose in partnership accounting.

When the Final Financial Statements Are Prepared the Profit or Loss