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15. The difference between a partnership and a corporation balance sheet is the liabilities incurred by a corporation. ( TRUE or FALSE) 16. When treasury

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15. The difference between a partnership and a corporation balance sheet is the liabilities incurred by a corporation. ( TRUE or FALSE) 16. When treasury stocks is acquired retained earning are restricted by the amount of its cost. (TRUE or FALSE) 17. Salaries and interest allowance of partners are usually treated as a expense on a partnership income statement. (TRUE or FALSE) 18. If the allowance to the partners exceed the net income the difference must be distributed equally. (TRUE or FALSE) 19. Treasury stock acquired by the corporation is no longer considered as outstanding. (TRUE or FALSE) 20. Treasury stocks is classified as an investment of the issuing corporation. (TRUE or FALSE) 21. Treasury stocks acquired by the corporation is no longer considered as outstanding. (TRUE or FALSE) 22. If the allowances to the partners exceed the net income the difference must be distributed equally. (TRUE or FALSE) 23. Salaries and interest allowances of the partners are usually treated as an expense on a partnership income statement. (TRUE or FALSE) 24. When a partner sell his equity to an outsider the selling price become the new partners capital. (TRUE or FALSE) 25. If the company retained earnings balance is less than the amount of dividend to be paid stockholders, it can still declare dividends. (TRUE or FALSE) 26. The value assigned to the assets contributed by a partner to the Partnership is fair market value. (TRUE or FALSE) 27. Cumulative characteristics of preferred shares means that if a cash dividend has not been declared and is in arrears. It accumulates interest until paid. (TRUE or FALSE) 28. Gain or loss on realization is distributed according to partners capital balances. (TRUE or FALSE) 29. Stocks Dividend Distributed is classified as current liability. (TRUE or FALSE)

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