Review Buckeye’s financial statements as well as the accompanying notes. List and briefly discuss information included for this partnership that would typically not appear in financial statements produced for a corporation. Also comment on similarities between Buckeye’s financial statements and those of a corporation. Due to Buckeye acting as a partnership, they maintain a Statement of Partners’ Capital whereas a typical corporation would maintain a Stockholders’ Equity Statement. The information on the two statements share similar equity information, but Buckeye’s equity is shown as it is shared amongst the partners, while in a corporation, this equity is often held by outside shareholders. This being said, there is a “Liabilities and Partners’ Capital” section on the Balance Sheet to equal net assets opposed to liabilities being alongside stockholders’ equity as it would be in a typical corporation’s financial statements. The other financial statements (i.e. income statement, cash flow statement and statement of OCI) are the same for both corporations and partnerships typically.

Answer rating: 100% (QA)

1The Buckeye Pipe Line Company was started in 1886 and became an independent publicly owned company in 1911 The company was transformed into one of the nations largest independent common pipeline carr... View the full answer