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Overview. Accounting for partnerships requires recognition of several important factors From an accounting viewpoint, the partnership is a separate business entityAccrual accounting, cash basis accounting, or modified cash basis of accounting are allowed. Nature of Partnership Entity. Legal regulationEach state regulates the partnerships that are formed in itEach state tends to begin with a model act and then modifies it to fit that state\'s business culture and historyMost states have now 30730

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