Which of the following statements about partnerships is incorrect?
A) Partnership assets are co-owned by partners.
B) If a partnership is terminated, the assets do not legally revert to the original contributor.
C) If the partnership agreement does not specify the manner in which profit is to be shared, it is distributed according to capital contributions.
D) Each partner has a claim on assets equal to the balance in the partner's capital account.

Question

Quizplus · Accepted Answer

If the partnership agreement does not specify the manner in which profit is to be shared, profits are typically shared equally among partners, not according to capital contributions.

Which of the Following Statements About Partnerships Is Incorrect