Question

Which of the following statements about partnership financial statements is true? The owners’ equity statement is called the partners’ capital statement. Only the total of all partner capital balances is shown in the balance sheet. Details of the distribution of net income are shown in the partners’ capital statement. The distribution of net income is shown on the balance sheet.

Answer 1

Answer: The owners’ equity statement is called the partners’ capital statement.

Step-by-step explanation:

Partnership is a form of business whereby two or more individuals join their skills and money together in conducting a business.

It should be noted that the owners’ equity statement is called the partners’ capital statement.