If the salary allowances to partners exceed the net income of the partnership, O the salary allowances are no longer allowed. O the difference/balance is usually distributed based on the agreed profit and loss ratio. O the difference must be distributed equally. O the partnership must be terminated.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 8MC: A well written partnership agreement should include each of the following except ________. A. how to...
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If the salary allowances to partners exceed the net income of the
partnership,
O the salary allowances are no longer allowed.
O the difference/balance is usually distributed based on the agreed profit and
loss ratio.
O the difference must be distributed equally.
the partnership must be terminated.
Transcribed Image Text:If the salary allowances to partners exceed the net income of the partnership, O the salary allowances are no longer allowed. O the difference/balance is usually distributed based on the agreed profit and loss ratio. O the difference must be distributed equally. the partnership must be terminated.
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