Which of the following is NOT a characteristic of the proprietary theory that influences accounting for partnerships?

Question

Quizplus · Accepted Answer

The characteristic of limited liability is not associated with the proprietary theory, but rather with the entity theory. The proprietary theory views a partnership as simply a collection of individual owners, rather than a separate legal entity with its own liability protections. Partners' salaries being viewed as a distribution of income rather than a component of net income, not treating a partnership as a separate taxable entity, and potential dissolution with significant changes in ownership structure are all characteristics of the proprietary theory.

Which of the Following Is NOT a Characteristic of the Proprietary