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.
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.
Chapter21: Partnerships
Section: Chapter Questions
Problem 5BCRQ
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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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