In a partnership agreement

Assignment Help Financial Accounting

Reference no: EM13906143

In a partnership agreement, if the partners agreed to an interest allowance of 10% annually on each partner's investment, the interest allowances:

A. Is ignored when earnings are not sufficient to pay interest

B. Can make up for unequal capital contributions

C. Is an expense of the business?

D. Must be paid because the partnership contract has unlimited life

E. Legally becomes a liability of general partner

Reference no: EM13906143

Questions Cloud

What we know in statics : Circle the cases that are solvable using what we know in Statics (hence circle thosewhich are fixed and internally/externally determinate)\

Considering purchasing equipment : Lefler Company is considering purchasing equipment. The equipment will produce semi-annual cash inflows of $22,000 for 3 years. Lefler requires a minimum annual rate of return of 8%. Assuming that the cash inflows are received at the end of each six-..

About the contribution margin ratio : Rothe Company manufactures and sells a single product that it sells for $200 per unit and has a contribution margin ratio of 25%. The company's fixed costs are $43,000. If Rothe desires a monthly target operating profit equal to 20% of sales, sales w..

What sales volume would the two stores have equal profits : Acme Sales has two store locations. Store A has fixed costs of $124,000 per month and a variable cost ratio of 80%. Store B has fixed costs of $197,000 per month and a variable cost ratio of 60%. At what sales volume would the two stores have equal p..

In a partnership agreement : In a partnership agreement, if the partners agreed to an interest allowance of 10% annually on each partner's investment, the interest allowances:

Determine the vactor componet of the member produced : Determine the vactor componet of the member produced by f about thediagonqalline af of the rectangular block

Identify the key financial ratios : Identify the key financial ratios

What is the percentage change in profitability : Rohr Training Services (RTS) provides instruction on the use of computer software for the employees of its corporate clients. It offers courses in the clients’ offices on the clients’ equipment. The only major expense RTS incurs is instructor salarie..

What did you least enjoy about this team experience : What did you enjoy the most about working together on a team? What did you least enjoy about this team experience? How did your team function? Which "attributes of a highly functioning team" did your team demonstrate? Discuss

User Account

All Pages