Characteristics of a partnership’s financial statements. A client of yours is considering investing in a partnership and has been analyzing the financial statements of the partnership. Their analysis...


Characteristics of a partnership’s financial statements. A client of yours is considering investing in a partnership and has been analyzing the financial statements of the partnership. Their analysis has resulted in the following observations that that they are hoping you could address:


1. The balance sheet does not set forth the capital stock account at par value, which would define some level of minimum legal liability.


2. The balance sheet does not include any accrual for either state or federal income taxes even though the partnership reported pretax income.



Jan 03, 2022
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