1. Which of the following is not a principal characteristic of the partnership form of business organization? a. Mutual agency b. Association of individuals C. Limited liability d. Limited life 2. Partner B is investing in a partnership with Partner A. B contributes as part of his initial investment, Accounts Receivable of $10,000; an Allowance for Doubtful Accounts of $3,000; and $2,000 cash. The entry that the partnership makes to record B's initial contribution includes a a. credit to B, Capital for $12,000. b. debit to Accounts Receivable for $7,000. c. credit to B, Capital for $9,000. d. debit to Allowance for Doubtful Accounts for $3,000. 3. A partner's share of net income is recognized in the accounts through a. adjusting entries. b. closing entries. c. correcting entries. d. accrual entries. 4. Partner A receives $60,000 and Partner B receives $40,000 in a split of $100,000 net income. Which expression does not reflect the income splitting arrangement? a. 3:2 b. 3/5 & 2/5 C. 6:4 d. 2:1 5. O'Neal and Ewing share partnership profits and losses in the ratio of 6:4. O'Neal's Capital account balance is $80,000 and Ewing's Capital account balance is $50,000. Pippen is admitted to the partnership by investing $90,000 and is to receive a one-fourth ownership interest. O'Neal, Ewing and Pippen's capital balances after Pippen's investment will be O'Neal Ewing Pippen a. $80,000 $50,000 $90,000 b. $101,000 $64,000 $55,000 c. $99,000 $66,000 $55,000 d. $97,500 $67,500 $55,000