Which of the following statements is ?
A) Partners are employees of the partnership.
B) Salaries to partners are expenses on the partnership income statement.
C) Salary allowances usually reflect the relative value of services provided by partners.
D) Salary allowances are expenses.
E) Interest allowances are expenses.

Question

Quizplus · Accepted Answer

Salary allowances usually reflect the relative value of services provided by partners. This means that the amount of salary paid to a partner is based on the value of their contributions to the partnership. It is not necessarily tied to being an employee of the partnership or being considered an expense on the income statement.

Which of the Following Statements Is