Salary and interest allowances are considered in distributing net income to partners but not in distributing a net loss.

Question

Quizplus · Accepted Answer

Both salary and interest allowances are considered in distributing net income to partners according to the partnership agreement, but they are also considered when distributing a net loss, as these allocations can affect the overall distribution of the loss among partners.

Salary and Interest Allowances Are Considered in Distributing Net Income