Asked by Giovanni Montano on Jul 24, 2024
Verified
A statement of partner's equity is the same as a statement of owner's equity except:
A) there is a capital account for each partner.
B) net income is assigned to one partner.
C) no additional investment by partners is shown on the statement.
D) There is no difference in the statements.
Partner's Equity
The interest or ownership a partner has in a partnership, representing their claim on the assets after liabilities are settled.
Owner's Equity
The residual interest in the assets of a company after deducting liabilities, representing the owner's claim on the company's resources.
Capital Account
An account showing the net worth of a business at a specific point in time, including the owner's investment and retained earnings.
- Understand the differences between a statement of partner's equity and a statement of owner's equity.
Verified Answer
DA
Doritha AgyemangJul 31, 2024
Final Answer :
A
Explanation :
A statement of partner's equity differs from a statement of owner's equity primarily because there is a separate capital account for each partner in a partnership, reflecting each partner's share of the equity.
Learning Objectives
- Understand the differences between a statement of partner's equity and a statement of owner's equity.