Multiple Choice
Which statement concerning drawings by partners in a partnership is correct?
A) Drawings are generally regarded as withdrawals of future profits.
B) Drawings are taken into account when calculating the final distribution of profit between the partners.
C) Interest is charged on drawings if the partnership agreement is silent on the matter.
D) Charging interest on drawings acts as an incentive to partners to withdraw money from the partnership.
Correct Answer:
Verified
Correct Answer:
Verified
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