Final answer:
The statement of comprehensive income of a partnership is similar to that of a sole proprietorship, but there are exceptions due to shared profits, responsibilities among partners, and specific legal and financial relationships, making the statement false (2).
Step-by-step explanation:
The form and content of the statement of comprehensive income of a partnership are similar to those of a sole proprietorship, however, there are exceptions. This is because while both business types report their revenues, expenses, and net income, partnerships have unique considerations such as the distribution of profits and losses among partners, which may require separate statements or disclosures. Partnerships also have to consider the legal and financial relationships between partners, which can affect the presentation of the financial statements.
Some positive aspects of a partnership include being easy to start up with a partnership agreement, easy to manage, and having the ability to attract investors and hire additional employees. Partnerships have distinct advantages such as shared responsibility, more capital due to greater assets from each partner, and pass-through taxation where each partner pays taxes on their share of the income. Despite the ease of managing a partnership and no special taxes levied on the business itself, a partnership must consider the implications of shared profits, which is not an issue in a sole proprietorship.
Therefore, the statement that the form and content of the statement of comprehensive income of a partnership resemble those of a sole proprietorship with no exceptions is false.