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Derius Gibson
on Dec 17, 2024

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Which method of allocation of profits and losses is based on a percent of initial investment of the partners?

A) Salary allowance
B) Salary expense
C) Profit and loss ratio
D) Interest allowance

Profit and Loss Ratio

A financial metric that compares the gains and losses of a business over a specific period, often used to assess profitability.

Initial Investment

The initial amount of capital used to start a business venture, purchase an asset, or make an investment.

Interest Allowance

A sum that lenders may offer to borrowers, reducing the effective cost or total amount of payable interest on a loan.

  • Comprehend the allocation of earnings and deficits among partners within a partnership and the associated legal ramifications.
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Olivia WohlfordDec 18, 2024
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