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Which of the Following Is False Regarding the Measurement of Partnership

Question 15

Multiple Choice

Which of the following is false regarding the measurement of partnership income?


A) Partnerships must use the cash basis of accounting rather than the accrual basis.
B) Salaries to partners are treated as distributions of partnership income.
C) Interest allocated to partners is not deducted as an expense in measuring partnership income.
D) Partnerships do not report income tax expense.

Correct Answer:

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