1) If the partnership agreement does not otherwise state, partnership income is divided in proportion to the individual partner's capital balance.

True

False

2)

When a borrower receives the face amount of a discounted note less the discount, the amount is known as

	a.	the note proceeds
	b.	the note principal
	c.	the note deferred interest
	d.	the note discount

3)

A ratio of 4:2:1 is the same as

	a.	40% 20% 10%
	b.	4/7 2/7 1/7
	c.	4/10 2/10 1/20
	d.	7/4 7/2 7/1

4) When a partner invests noncash assets in a partnership, the assets are recorded at the partner's book value.

True

False

5) A partnership is subject to federal income taxes.

True

False

6) Each partner has a separate capital and withdrawal account.

True

False

7) Payroll journal entries are made with data from the

	a.	payroll register
	b.	employee's earning record
	c.	wage and tax statement
	d.	employer's quarterly federal tax return