An expense in a company's income statement that would not appear in a partnership income statement is:
A)Income tax expense
B)Interest expense
C)Depreciation expense
D)Insurance expense

Question

Quizplus · Accepted Answer

The income tax expense is an expense that only applies to a corporation, as partnerships are not typically subject to income tax at the entity level. Partnership income is instead passed through to the individual partners, who are then responsible for reporting and paying taxes on their share of the partnership income. Therefore, option A is the correct answer.

B) Interest expense, C) Depreciation expense, and D) Insurance expense could all appear in both a corporation and partnership income statement, as they are common expenses incurred by both types of entities.

An Expense in a Company's Income Statement That Would Not