Partnership accounting does not:
A) Use a withdrawals account for each partner.
B) Allocate net income to each partner according to the partnership agreement.
C) Tax the business entity.
D) Allocate net loss to each partner according to the partnership agreement.
E) Use a capital account for each partner.

Question

Quizplus · Accepted Answer

Partnership accounting does not involve taxing the business entity because a partnership is a pass-through entity, meaning the profits and losses are reported on each partner's individual tax return.

Partnership Accounting Does Not