Question
1........................ means that any partner can bind the other partners in a contract if he or she is acting within the general scope of the
1........................ means that any partner can bind the other partners in a contract if he or she is acting within the general scope of the business.
a. mutual agency
b. limited liability
c. unlimited liability
d. limited partnership
.
2. Delisa invests office equipment with a fair market value of $70,000, delivery equipment with a fair market value of $89,000, and cash of $54,000. She owes $68,000, represented by a note on the delivery equipment. If Delisa's office equipment cost $80,000 and has accumulated depreciation of $30,000, the amount at which the asset should be entered on the books of the new partnership would be
a.$89,000.
b.$50,000.
c.$80,000.
d.$70,000.
.
3. The interest of a partner in the partnership can be transferred freely without the consent of the other partners.
True
False
.
4.
The allocation of net income and its impact on partners' equity balances should be disclosed on the
a.statement of partners' equity.
b.work sheet.
c.income statement.
d.balance sheet.
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