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1. In the absence of partnership agreement to the contrary, what is the obligation of the partners as regards to capital contribution? a. They shall

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1. In the absence of partnership agreement to the contrary, what is the obligation of the partners as regards to capital contribution? a. They shall contribute equally. b. They shall contribute based on their profit agreement. c. They shall contribute based on their loss agreement. d. They shall contribute based on their withdrawal agreement. 2. In the absence of partnership agreement to the contrary, the non-cash assets contributed by the partners shall be measured initially at a. Book value b. Present value of future cash flows C. Fair value d. Historical cost 3. How shall the partnership profits or losses be distributed among the partners? a. Based on original capital contribution ratio b. Based on profit or loss agreement of partners c. Based on ending capital contribution ratio d. Equally 4. In the absence of partnership profit agreement to the contrary, how shall industrial partner share in partnership's profit? a. Equal to the share of the least capitalist partner b. Equal to the share of the highest capitalist partner . Just and equitable share d. Equal to the average share capitalist partners 5. In the absence of partnership profit agreement to the contrary, how shall the remaining partnership's profit be distributed to the capitalist partners after distributing the share of industrial partner? a. Based on capital contribution ratio b. Based on loss agreement ratio C. Equally d. Equal to share of industrial partner 6. In the absence of partnership loss agreement to the contrary, how shall industrial partner share in partnership's loss? a. Equal to the share of the least capitalist partner b. Based on profit agreement ratio c. Just and equitable share d. None 7. In the absence of partnership loss agreement to the contrary, how shall capitalist partners share in partnership's loss? a. Based on capital contribution ratio b. Based on profit agreement ratio C. Just and equitable share d. Equally 8. Which of the following transactions will decrease the capital balance of a partner? a. Additional investment by said partner b. Share in partnership's profit c. Drawings by said partner d. Receipt of bonus from other partners

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