Concept:A partnership agreement specifies the terms of mutual rights and duties, but it does not include every incidental item like interest on fixed assets.
Explanation:The agreement usually states the profit-sharing ratio among partners.
It also mentions whether interest will be allowed on partners’ capital and at what rate.
The purpose or nature of the partnership business is clearly defined in the agreement.
However, interest on fixed assets is not a term of a partnership agreement because fixed assets are not treated as capital contributions earning interest.
Therefore, the item that is not stated in the partnership agreement is interest on fixed asset.
Answer:C. Interest on fixed asset.