24 AaBbCCDdEG AaBbCCOdEG Aa BbCcDc AaBbCeDdE Nomal No Spacing Harding 1 Heading 2 20. A firm has two partners: Jim and Bill. Jim owns 60% of the partnership and Bill owns 40%. In which of the following transactions will the partnership be held responsible for an individual partners' actions? A) Jim signs a contract as a guarantor for Bill's personal loan. B) Jim buys a laptop on credit for personal use. C) Bill signs a contract to buy furniture for official use in the partnership. D) Bill defaults on payment of his personal credit card bill. 21. In comparison to a corporation, the owners of a general partnership A) have limited claim on the profits generated by the business B) are restricted from dissolving the business without prior notice to the SEC " have an unlimited personal liability for the debts of the business Dj are taxed at two levels 22. In a _ each partner is not personally liable for the malpractice committed by another partner. A) general partnership B) limited liability partnership C) limited partnership D) sole proprietorship 23. Which of the following businesses is most likely to be organized as an LLP? A) a bookstore run by two partners Bj an international retail chain C) an accounting firm run by two partners D) a stationery store owned by an individual 24. Andy and lan formed a partnership on April 1, 2019. Andy contributes equipment to the business that originally cost $82,000 and on which accumulated depreciation of $16,000 has been recorded. The current market value of the equipment is $74,000. The value of the equipment recorded in the partnership journal is A) $66,000 B) $74,000 C) $58,000 D) $82,000 MacBook Proences Mailing's Review View Tell me MaBbCcode AaBbCcDo AJabCEDdEd A Normal No Spacing Handing 1 16. Masterpiece Sales Company offers warranties on all their electronic goods, Warranty expense is estimated at 3% of sales revenue, In 2019, the company had $603,000 in sales. In the same year, Masterpiece Sales replaced defective goods with goods that had a cost of $16,500. Which of the following is the entry needed to record the replacement of the defective goods? Estimated Warranty Payable 16,500 Merchandise Inventory 16,500 B) Warranty Expense 16,500 Estimated Warranty Payable 16,500 Warranty Expense 18,090 Estimated Warranty Payable 18,090 D) Warranty Expense 18,090 . Merchandise Inventory 18,090 17. A company has been sued for product failures allegedly resulting in injuries to the individuals bringing the lawsuit. The company's lawyers believe it is more than remote, but less than probable, that the lawsuit will result in an actual liability. Which of the following actions should be taken by the company's management? A) The liability should be estimated and recorded as an expense. B) The situation should be described in a note to the financial statements. C) The possible liability should be ignored. D) Management should consider resigning. 18. The information related to interest expense of Classic Music, Inc. is given below: Net income $264,000 Income tax expense 107,000 Interest expense 66,000 Based on the above data, which of the following is the times-interest-earned ratio? (Round the final answer to two decimal places.) A) 4.08 times B) 4 times C) 6.62 times D) 5 times Focu MacBook Pro