The Profit And Loss Account of Partnership - SS2 Accounting Past Questions and Answers - page 1
What is the profit and loss account of a partnership?
A financial statement that shows the financial performance of a partnership over a particular period.
A statement of the assets and liabilities of a partnership.
A statement that shows the distribution of profits among partners.
A statement that shows the amount of tax payable by a partnership.
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What are the revenues in a profit and loss account of a partnership?
Costs incurred by the partnership to generate revenue.
Income earned by the partnership, such as sales, commission, rent received, etc.
Salaries paid by the partnership.
Taxes paid by the partnership.
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What is the net profit or loss in a profit and loss account of a partnership?
The total revenue earned by the partnership.
The total expenses incurred by the partnership.
The difference between the total revenue and total expenses.
The sum of the total revenue and total expenses.
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Why is the profit and loss account important for a partnership?
To determine the profitability of the business.
To calculate the assets and liabilities of the partnership.
To show the distribution of profits among partners.
To identify the amount of tax payable by the partnership.
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What is included in the revenues of a profit and loss account of a partnership?
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What is the purpose of preparing a profit and loss account for a partnership?
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