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  • Which of The Following Interest Component Calculat

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    Jessie jorge
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    The document discusses different components used to calculate and allocate partnership profits and losses between partners. It asks which component is least susceptible to manipulation, which compensates for routine time/effort, and which is most commonly offered to managing partners. It also asks about true statements regarding residual profit/loss ratios and what should be done when the ratios change.

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    Which of the Following Interest Component Calculat

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    The document discusses different components used to calculate and allocate partnership profits and losses between partners. It asks which component is least susceptible to manipulation, which compensates for routine time/effort, and which is most commonly offered to managing partners. It also asks about true statements regarding residual profit/loss ratios and what should be done when the ratios change.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    13 views1 page

    Which of The Following Interest Component Calculat

    Uploaded by

    Jessie jorge
    The document discusses different components used to calculate and allocate partnership profits and losses between partners. It asks which component is least susceptible to manipulation, which compensates for routine time/effort, and which is most commonly offered to managing partners. It also asks about true statements regarding residual profit/loss ratios and what should be done when the ratios change.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Which of the following interest component calculation bases is least susceptible to manipulation

    when allocating when allocation profit and losses to partners?


    Which component of the partnership profit and loss allocation compensates partners for the
    routine
    time and effort expensed in the business?
    a. Interest on capital balance
    Which component of the partnership profit and loss allocation is most commonly offered to the
    partner who manages the business?
    a. Interest on capital balance
    . Which of the following statement is true with regard to partnership residual profit and loss
    ratio?
    Which of the following should be done when the partnership profit and loss ratios are changed?
    a. The book and market value of assets and liabilities should be evaluated

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