Which of the following statements is correct? * Salaries to partners and interest on O partners' capital are expenses of the partnership. Salaries to partners are expenses of the O partnership but not interest on partners' capital. Interest on partners' capital is an expense O of the partnership but not salaries to partners. Neither salaries to partners nor interest on O partners' capital are expenses of the partnership.
Which of the following statements is correct? * Salaries to partners and interest on O partners' capital are expenses of the partnership. Salaries to partners are expenses of the O partnership but not interest on partners' capital. Interest on partners' capital is an expense O of the partnership but not salaries to partners. Neither salaries to partners nor interest on O partners' capital are expenses of the partnership.
Chapter20: Corporations And Parterships
Section: Chapter Questions
Problem 21DQ
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Question
Transcribed Image Text:Which of the following statements is
correct? *
Salaries to partners and interest on
partners' capital are expenses of the
partnership.
Salaries to partners are expenses of the
partnership but not interest on partners'
capital.
Interest on partners' capital is an expense
O of the partnership but not salaries to
partners.
Neither salaries to partners nor interest on
partners' capital are expenses of the
partnership.
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