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TRUE OR FALSE

11. When ending capital balances are used, additional investments during the year are encouraged. 2-30 | WIN Ballada's Partnership and Corporation Accounting 12. The salary allocation to partners also appears as salaries expense on the partnership's statement of comprehensive income. 13. The form and content of the statement of comprehensive income of a partnership resemble those of a sole proprietorship with no exceptions. 14. The provision for interest on partners' capital will not be honored because the operations resulted to a loss even if the agreement provided for such interest. 15. The basis for distribution of profits or losses is a matter of agreement among the partners. It may be based on their capital contribution ratio. 16. The income summary account is credited in the entry to record distribution of profits. 17. Interest on loans from partners is recognized as partnership income. 18. When beginning capital balances are used in allocating profits, year-end investments are discouraged. 19. If a partnership agreement does not specify how profits or losses are to be distributed, they should be allocated based on relative capital account balances. 20. The industrial partner is not liable for losses because he cannot withdraw the work or labor already done by him. 21. Partnership profits and losses are divided among partners according to their sharing agreement. If no sharing agreement exists, profits or losses are divided equally. 22. It is possible to allocate profit or loss to partners based solely on average capital balances