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2. Which of the following statements is true? Before calculating salary and interest allowances, it is necessary to determine whether net income will cover these

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2. Which of the following statements is true? Before calculating salary and interest allowances, it is necessary to determine whether net income will cover these expenses. A loss occurs when net income is not large enough to cover salary and interest allowances for the partners. A. B. C. An interest allowance for the partners is an expense to the business D. When a partner is added to a partnership the previous partnership ends. E. All of the above statements are true

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