The salary and interest allowances in a partnership profit-sharing agreement can best be described as
A) expenses of the business that are deducted from revenue in the determination of net income.
B) amounts on which each partner will not have to pay income tax.
C) a legal requirement in order for a partnership to be formed.
D) a means of distributing net income in relation to the services provided and the capital invested by each partner after which profits or losses are distributed as specified in the partnership agreement.
Correct Answer:
Verified
Q63: The partners' salary and interest allowances are
Q64: Partnership net income of $33,000 is to
Q65: Partnership net income of $135,000 is to
Q66: Ben White and Lisa Green are partners,
Q67: Partnership net income of $40,000 is to
Q69: Which of the following statements is correct?
A)If
Q70: Sam McGuire and Marcos Valle are partners,
Q71: All of the following are included on
Q72: Partnership net income of $45,000 is to
Q73: Partnership net income of $68,000 is to
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents