83. Which of the following statementsabout the rules for the distribution ofprofits or losses is/are false? *1. The profits will be divided according to partner's agreement.II. If there is no agreement as to profit distribution, profits shall be divided according to average capital ratio.II. Industrial partner will share profits as may be just and equitable and share partnership losses equally.IV. If there is not agreement as to distribution of losses, losses shall be distributed according to profit distributionagreement.V. Limited partners shall share losses up to their contributions onlyVI. Capitalist and industrial partners share losses according to ratio of original capital investmentOA. II, and IIIO B. II, III and IVO C. II, III, and VO D. II, III, and VI

Answer: The distribution of profit and losses are done on the basis of decided ratio.

Answered: 83. Which of the following statements…

Business

Accounting

83. Which of the following statements about the rules for the distribution of profits or losses islare false? *

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter10: Partnership Taxation

Section: Chapter Questions

Problem 23MCQ

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