1. S1: Partnership profits and losses (including bonuses and revaluations) are allocated in accordance with their Profit and Loss Ratio. S2: If only the share in the profits have been established in the articles of partnership, then the share in the losses must be in accordance with their profit ratio.

a. S2 True; S1 False

b. Both are false

c. S1 True; S2 False

d. Both are true

2. If the total contributed capital of the partnership is greater than the total agreed capital, which of the following may arise:

a. Overvaluation of Assets

b. All of the choices

c. Undervaluation of Assets

d. Goodwill