When the final financial statements are prepared the profit or loss allocation for a partnership is normally shown in the:
A) profit or loss allocation statement.
B) statement of changes in partner's equity.
C) extended profit statement.
D) cash flow statement.

Question

Quizplus · Accepted Answer

The profit or loss allocation for a partnership is typically shown in the statement of changes in partner's equity. This statement reflects the distribution of the year's profit or loss among the partners according to the partnership agreement.

When the Final Financial Statements Are Prepared the Profit or Loss