1.

To make certain that each partner fully understands how a particular partnership operates, partners should draw up the:

Group of answer choices

articles of partnership

articles of liability

articles of incorporation

articles of business agreement

2.

Which of the following statements is correct with regard to drawing accounts that may be used by a partnership?

Group of answer choices

Drawing accounts appear on the balance sheet as a contra-equity account

Drawing accounts establish the amount that may be taken from partnership by a partner in a given time period

Drawing accounts are similar to Retained Earnings in a corporation.

Drawing accounts are closed to the partners capital accounts at the end of the accounting period

3. Which of the following is not a withdrawal that may be found in a partnerships drawing account?

Group of answer choices

All of the choices may be found in a drawing account

Removal of cash by a partner

Payment of a partners speeding ticket by the partnership

Removal of inventory by a partner

4.

Which of the following statements pertains to partnership dissolution?

Group of answer choices

It refers to the process of converting the non-cash assets of the partnership and distributing the total cash to the creditors and the remainder to the partners.

It refers to the end of the life of the partnership.

It refers to the change in the relation of the partners caused by any partner ceasing to be associated in the carrying on of the partnership.

It refers to the extinguishment of the juridical personality of the partnership.

5.

Which of the following must occur for a new partner to enter the partnership by acquiring an ownership interest directly from an existing partner?

Group of answer choices

Existing partners must know the amount the new partners is paying for the ownership interest

Existing partners must approve the admission of the new partner into partnership

The new partner must acquire all of the current partners ownership interest

The new partner must live in the same state as the other partners