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  • Partnership and Not-for-Profit Accounting
  • A partner's salary and commission is/are
Multiple choice

A partner's salary and commission is/are

  1. charges against profit.

  2. appropriation out of profits.

  3. charges against assets

  4. none of these

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

It is an appropriation out of profits, because it is a distribution out of the net profit and not paid in case of loss.

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