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Problem 1: The following factors should be considered for a just and fair profit and loss agreement, except:
A. Amount and timing of capital contributions
B. Managerial skills or talents of the partners
C. Time spent on partnership operations of the partners
D. None of the above
Problem 2: The following provisions for profit and loss distribution are intended to compensate for the difference in the timing and amount of capital contributions, except:
A. Interest on capital
B. Profit and loss ratio based on weighted average capital
C. Profit and loss ratio based on ending capital
D. Salaries and bonuses to managing partners
Financial Statement Analysis and Preparation
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