If a partnership contract provides for interest at 10% annually on each partner's investment,the interest
A)Is ignored when earnings are not sufficient to pay interest
B)Provides for the sharing of a portion of the partnership earnings in the capital ratio
C)Is an expense of the business
D)Must be paid in cash
E)Legally becomes a liability of the partnership

Question

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The Answer of If a partnership contract provides for interest at 10% annually on each partner's investment,the interest
A)Is ignored when earnings are not sufficient to pay interest
B)Provides for the sharing of a portion of the partnership earnings in the capital ratio
C)Is an expense of the business
D)Must be paid in cash
E)Legally becomes a liability of the partnership

If a Partnership Contract Provides for Interest at 10% Annually