On a partnership's Form 1065, which of the following statements is not true?
A)The partnership reconciles its net income (including separately stated items) to book income on Schedule M-1 or M-3.
B)The partnership balance sheet on Schedule L is generally presented on a financial (book) basis.
C)All partnership income and expense items are reported on Form 1065, page 1.
D)The partnership's equivalent of taxable income is reported in the "Analysis of Income (Loss)."
E)None of the above statements are true.

Question

Quizplus · Accepted Answer

Partnership income and expense items are reported on Form 1065, but not all of them are reported on page 1. Some items are separately stated and reported on other parts of the return. Therefore, statement C is not entirely true. The other statements are accurate. The partnership reconciles its net income to book income on Schedule M-1 or M-3, and the balance sheet on Schedule L is presented on a financial basis. The partnership's equivalent of taxable income is reported in the "Analysis of Income (Loss)."

On a Partnership's Form 1065, Which of the Following Statements