Which of the following statements is TRUE? Partners are employees of the partnership. Salaries to partners are expenses on the partnership income statement. Salary allowances usually reflect the relative value of services provided by partners. Salary allowances are expenses of the partnership. Partner interest allowances are shown as expenses on the income statement.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Which of the following statements is TRUE?
Partners are employees of the partnership.
Salaries to partners are expenses on the partnership income statement.
Salary allowances usually reflect the relative value of services provided by
partners.
Salary allowances are expenses of the partnership.
Partner interest allowances are shown as expenses on the income statement.
Transcribed Image Text:Which of the following statements is TRUE? Partners are employees of the partnership. Salaries to partners are expenses on the partnership income statement. Salary allowances usually reflect the relative value of services provided by partners. Salary allowances are expenses of the partnership. Partner interest allowances are shown as expenses on the income statement.
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