Which of the following methods of distributing income and losses cannot be accomplished (cannot stand alone)?
A)Capital balance ratio alone
B)Interest and stated ratio alone
C)Stated ratio alone
D)Salary alone

Question

Quizplus · Accepted Answer

Salary alone cannot be used to distribute income and losses because it does not account for the remaining profit or loss after salaries are allocated. It needs to be combined with other methods to ensure the entire income or loss is distributed.

Which of the Following Methods of Distributing Income and Losses