Which of the following is true of a partnership balance sheet?
A)Unlike a corporation's balance sheet, it includes all information from its income statement.
B)It excludes the depreciation expense.
C)It reports a separate capital account for each partner.
D)It details the interest expenses of the business.

Question

Quizplus · Accepted Answer

A partnership balance sheet reports a separate capital account for each partner. This allows for transparency and accuracy in tracking the ownership interests of each partner in the business. Choice A is incorrect because a partnership balance sheet typically only includes information related to the assets, liabilities, and equity of the business, not necessarily all information from its income statement. Choice B is incorrect because depreciation expense is typically included in the balance sheet as a reduction in the value of the assets. Choice D is incorrect because interest expenses are typically reported in the income statement, not the balance sheet.

Which of the Following Is True of a Partnership Balance