ACT 2302-PRINCIPLES OF ACCOUNTING II EXAMI PART 1 MULTIPLE CHOICE QUESTIONS (2points per questions) Instructions: For each question, choose the best answer by circling the appropriate letter. 1. If there is no written agreement as to the way income will be divided among partners a. they will share income and losses equally b. they will share income and losses according to their capital balances c. they will share income and losses according to the time devoted to the business d. there really is no partnership agreement 2. When a new partner is admitted to a partnership, all partnership assets should be revised to relle Current values. a. True b. False 3. A partnership requires only an agreement between two or more persons to organize a. True b. False 4. An advantage of the partnership form of business organization is a. unlimited liability b. mutual agency c. case of formation d. limited life 5. If the stock is issued for a price that is less than its par, the stock has been sold alu) a. discount b. income c. deficit d. premium 6. The characteristic of a partnership that gives the authority to any partner to legally eng partnership and all otherpartners to business contracts is called a. unlimited liability b. case of formation c. mutual agency d. dissolution 7. One of the main disadvantages of the corporate form is the a. Professional management b. Double taxation of dividends c. charter d. requirement to stock