Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 16 - No. 21)

What is the role of the partnership agreement?
To set the partnership's accounting policies.
To dictate how profits and losses are divided.
To manage the partnership's day-to-day operations.
To determine which assets the partnership will acquire.

Explanation

The partnership agreement outlines key decisions, including the profit and loss distribution.

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