Asked by Ramneek Thatai on Apr 26, 2024

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Which one of the following would not be considered an expense of a partnership in determining income for the period?

A) Expired insurance
B) Salary allowance to partners
C) Supplies used
D) Freight-out

Salary Allowance

An agreed amount of money paid regularly to an employee on top of their salary for specific purposes, such as travel or housing.

Expired Insurance

The portion of an insurance premium that represents coverage for a past period.

Supplies Used

The value of materials and goods consumed during a company's operations within a specific period.

  • Familiarize yourself with the techniques for assessing and distributing the financial outcomes of a partnership, factoring in the impact of interest on capital, fixed salaries, and agreed-upon ratios.
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Verified Answer

MG
Madison GublerApr 29, 2024
Final Answer :
B
Explanation :
Salary allowance to partners would not be considered an expense in determining income for the period since it is a distribution of profits to partners, not an expense incurred to generate revenue.