Which of the following is true of a partnership balance sheet?
A)Unlike a corporation's balance sheet,it includes all income statement account information.
B)It excludes any current liabilities.
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 is because in a partnership, each partner has a separate ownership interest in the business, and their individual capital accounts reflect their respective investments and any profits or losses allocated to them. Option A is incorrect as a partnership balance sheet does not include income statement account information. Option B is also incorrect as a partnership balance sheet includes all current and long-term liabilities. Option D is incorrect as interest expenses will be reported on the income statement, not the balance sheet.

Which of the Following Is True of a Partnership Balance