Summary
Summary Financial accounting (recording statements)
- Course
- Institution
This provides information on how to record financial statements for partnerships .Check and follow me for more info on Financial accounting
[Show more]
Seller
Follow
BookSquad
Reviews received
Content preview
Unit 4: Financial Statements of PartnershipsA description of partnerships and merits as a form of ownership
As mentioned in study unit 1, a partnership consists of a minimum of 2
partners that conducts business with a similar goal in mind.
Partnerships are not subjected to the same rigorous laws as companies
therefore it is relatively easy to initiate a partnership.
All partners are liable for any debts that is incurred from the operations
of the partnership.
This means any partner can be held liable for unpaid debt if the creditor
is confident that the outstanding balance can be collected.
, Unit 4: Financial Statements of Partnerships
Advantages and disadvantages of partnerships
Advantages Disadvantages
Easy to start a partnership
Less competition due to collaboration All partners are held liable for any debts incurre
Increase capital contribution Partners are allowed to use the business as
collateral
Different skills sets can contribute to the advance Death or resignation can have a negative result
of the partnership the partnership
New partnerships can be created if one or more
Partners leave
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller BookSquad. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $2.87. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79650 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now