Which statement is true concerning the sharing of income in a partnership? (Poin
ID: 2501838 • Letter: W
Question
Which statement is true concerning the sharing of income in a partnership? (Points : 1) The Revised Uniform Partnership requires a partnership to specify a different sharing rule for losses than for profits. A partnership agreement specifying unequal sharing of profits takes precedence over the specifications of the Revised Uniform Partnership Act. The Revised Uniform Partnership Act is silent regarding income sharing; the partnership agreement is required to specify an income sharing rule. The Revised Uniform Partnership Act requires that partners share partnership income equally.
Explanation / Answer
The following statement is TRUE concerning the sharing of income in a partnership:
A partnership agreement specifying unequal sharing of profits takes precedence over the specifications of the Revised Uniform Partnership Act. - Option 2nd (or 'B')
This means that whatever has been specified under Revised Uniform Partnership Act will not matter if the partnership agreement specifies unequal sharing of profits.
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