Partnerships may maintain their capital accounts according to which of the following rules?
A)GAAP.
B)704(b).
C)Tax.
D)Any of the rules.
E)Only GAAP and 704(b).

Question

Quizplus · Accepted Answer

Partnerships can maintain their capital accounts according to various rules, including Generally Accepted Accounting Principles (GAAP), Section 704(b) of the Internal Revenue Code, and tax basis. This flexibility allows partnerships to choose the method that best suits their accounting and tax needs.

Partnerships May Maintain Their Capital Accounts According to Which of the Following