Which of the following statements about a partnership is correct?
A) The personal assets of a partner are included in the partnership accounting records.
B) A partnership is not required to file an information tax return.
C) Each partner's share of income is taxable to the partnership.
D) A partnership represents an accounting entity for financial reporting purposes.

Question

Quizplus · Accepted Answer

A partnership represents an accounting entity for financial reporting purposes. This means that the partnership's financial statements reflect the entity's financial position, performance, and cash flows. In a partnership, each partner's personal assets are separate from the partnership's assets, and the partnership must file an information tax return. Each partner's share of income is taxable to the individual partner.

Which of the Following Statements About a Partnership Is Correct