Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 24 - No. 47)
Which of the following is most impacted by the profit-sharing ratio?
The business's revenue
Each partner's share of the net profit or loss
The initial capital contributions of each partner
The operating expenses of the business.
Explanation
The profit-sharing ratio determines how the profit or loss is distributed amongst the partners.
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