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.