Question

Identify at least two ways in which the Apple corporate income statement differs from a partnership income statement.

Answer 1

1. Salary attributable to a Partner

2. Interest on Capital

3. Share of Residual Profit

Step-by-step explanation:

The Financial Statements for all businesses are prepared much in the same way in most respects. It is only after calculation of the Profit for the Year that a change may take place.

The Partnership should show a share of profit in a special account known as the Appropriation Account. Here the heading will be Salary attributable to a Partner, Interest on Capital and Share of residual Profit

The above items are only seem in the partnership income statement and not in a corporate income statement.