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1 If the partners have no agreement on how to divide profits or losses, the ideal is to divide it based on their ________________.

Select one:

a. Capital balance

b. Memorandum

c. Credited

d. Capita

2 The only difference in the balance sheet of a sole proprietorship and a partnership is the plurality of __________ accounts.

Select one:

a. Income Statement

b. Capital

c. Deficiency

d. Profit and loss

3 In adjusting the accounts of a partner who is already in business prior to the partnership formation, the entries should have a debit or credit to his __________ account.

Select one:

a. Credited

b. Memorandum

c. Capital balance

d. Capita

4 Assets equal liabilities plus _______.

Select one:

a. Profit

b. Capital or equity

c. Adjusting

d. Credited

5 The gain or loss on realization of assets will be shared by the partners using their ______________ ratio or agreement.

Select one:

a. Bonus

b. Installment

c. Liquidation

d. Profit and loss

6 ___________ is debited in recording the division off profit.

Select one:

a. Dissolution

b. Profit

c. Debited

d. Income summary or Revenue and expense summary

7 Limited partners are those whose personal obligations to the partnership debts are up to the extent of his ___________ only.

Select one:

a. Contributions or investment

b. General

c. Universal

d. Industrial

8 ______ is the process of clearing the affairs of the business after dissolution.

Select one:

a. Investment

b. Liquidated

c. Purchase

d. Liquidation

9 If the partners' Total Contributed Capital is equal to their Total Agreed Capital, there is a possibility of a partner giving a ____to other partners.

Select one:

a. Liquidation

b. Installment

c. Profit and loss

d. Bonus

10 If general journal entries are done during the accounting period ____ entries are prepared at the end of the accounting period to report the right income and expenses.

Select one:

a. Credited

b. Adjusting

c. Profit

d. Capital or equity

11 Partnership is an association of two or more persons who co-owns a business for ______.

Select one:

a. Capital or equity

b. Adjusting

c. Profit

d. Credit

12 The contributions to the common fund of the partnership can be money, property, or _____.

Select one:

a. Limited

b. Industry

c. Sole proprietorship

d. Articles of partnership or partnership contract

13 Liquidation by _______ is a method wherein the assets of the partnership are realized on a piecemeal basis.

Select one:

a. Profit and loss

b. Installment

c. Liquidation

d. Bonus

14 For every account debited there is corresponding account _____.

Select one:

a. Capital or equity

b. Profit

c. Credited

d. Adjusting

15 In a partnership, all its information and partners' agreements are stated in the _______.

Select one:

a. Articles of partnership or partnership contract

b. Sole proprietorship

c. Industry

d. Limited

16 If the partners have no agreement on how to divide losses, the agreement on their _______ sharing will apply.

Select one:

a. Debited

b. Profit

c. Dissolution

d. Income summary or Revenue and expense summary

17 A partner's drawing account is ______ for his personal withdrawal of cash and other items from the partnership.

Select one:

a. Income summary or Revenue and expense summary

b. Debited

c. Dissolution

d. Profit

18 Business transactions are recorded in _____ order and in terms of money during the accounting period.

Select one:

a. Language

b. Liabilities

c. Chronological

d. Income

19 _________ entry is required to record the partner's contribution of his services only.

Select one:

a. Capital balance

b. Capita

c. Credited

d. Memorandum

20 _________ summarizes the revenues and costs and expenses of a partnership.

Select one:

a. Deficiency

b. Income Statement

c. Profit and loss

d. Capital

21 A partner's capital account is ________ for his initial investment in the partnership and for his share in the net income.

Select one:

a. Memorandum

b. Credited

c. Capital balance

d. Capita

22 Juan is admitted to the partnership by contributing P10, 000, this is an example of admission of a new partner by _____.

Select one:

a. Liquidated

b. Purchase

c. Liquidation

d. Investment

23 _____ partner is one who contributes his services only to the partnership.

Select one:

a. Universal

b. Industrial

c. Contributions or investment

d. General

24 Partnership ______ is the process of closing the partnership and distributing its assets.

Select one:

a. Profit and loss

b. Liquidation

c. Bonus

d. Installment

25 Compared to a ____, partnership has a better management.

Select one:

a. Sole proprietorship

b. Limited

c. Industry

d. Articles of partnership or partnership contract

26 Admitting a new partner by _____ is a personal transaction between the selling and the buying partner.

Select one:

a. Liquidated

b. Liquidation

c. Investment

d. Purchase

27 ____ partnership is one in which the partners agreed to bring to the partnership their whole property.

Select one:

a. Contributions or investment

b. Universal

c. General

d. Industrial

28 ________ of a partnership is the point in time when the partners cease to operate the business together.

Select one:

a. Debited

b. Dissolution

c. Income summary or Revenue and expense summary

d. Profit

29 Each partner, except for _____ partners is individually or personally liable for partnership debts in the event that it can no longer pay them.

Select one:

a. Industry

b. Articles of partnership or partnership contract

c. Sole proprietorship

d. Limited

30 It is the sum of all the capital balances of the old partners plus the actual contribution of the incoming partner.

Select one:

a. Debt

b. Total Capital Contribution

c. Balance sheet

d. Profit

31 It is the process of clearing all the partnership affairs.

Select one:

a. Total Capital Contribution

b. Dissolution

c. Purge

d. Winding up

32 Ace and Bob agreed to admit Don in their partnership. Prior to the partnership, the capital balances of Ace and Bob are P 50,000 and P100, respectively, and their share profit and loss based on their capital. Assuming Don invests P100,000 for 1/2 interest in the new partnership, how much will his capital credit be?

Select one:

a. P125,000

b. P130,000

c. P135,000

d. P120,000

33 It is the method of admitting a new partner in an existing partnership where the sale of interest in a personal transaction between the buying and the selling partner.

Select one:

a. Winding up

b. Total Capital Contribution

c. Admission of a new partner by purchase

d. Dissolution

34 X, Y, and Z are partners sharing profit and losses equally. Their capital balances on March 31, 2017 are P 60,000, P60,000, and P40,000, respectively. Z decided to withdraw from the partnership to stay permanently abroad. The partners agreed that Z will take a fully depreciated equipment with a second hand value of P2,400 and will be paid cash for the remaining interest. How much cash will be paid to Z?

Select one:

a. P37,400

b. P36,400

c. P39,400

d. P38,400

35 Ace and Bob agreed to admit Don in their partnership. Prior to the partnership, the capital balances of Ace and Bob are P 50,000 and P100, respectively, and their share profit and loss based on their capital. Assuming Don purchases 1/2 of the interest of Ace and Bob for P75,000, how much will the firm's total new agreed capital be?

Select one:

a. P140,000

b. P160,000

c. P150,000

d. P170,000

36 It indicates the point when the partners stop to operate the business together.

Select one:

a. Winding up

b. Total Capital Contribution

c. Dissolution

d. Admission of a new partner by purchase

37 Ace and Bob agreed to admit Don in their partnership. Prior to the partnership, the capital balances of Ace and Bob are P 50,000 and P100, respectively, and their share profit and loss based on their capital. Assuming Don purchases 1/2 of the interest of Bob for P60,000, How much will his capital credit be?

Select one:

a. P70,000

b. P40,000

c. P50,000

d. P60,000

38 It means the capital of a partner is not enough to cover his share in the losses on realization.

Select one:

a. Debt

b. Capital deficiency

c. Deflation

d. Deflation

39 It is a kind of partner whose personal assets and its value is greater than his obligations in the partnership debts in the event of liquidation.

Select one:

a. Dormant Partner

b. Nominal partner

c. Ghost partner

d. Solvent partner

40 This is the kind of corporation that is incorporated under the Corporation Code of the Philippines.

Select one:

a. Nonprofit Organizations

b. C Corporation

c. Stock Corporation

d. Domestic corporation

41 How long can a corporation operate?

Select one:

a. 50 years

b. 45 years

c. None of these

d. 25 years

42 A corporation is organized under the law of the state and different from its owners is what characteristic of a corporation?

Select one:

a. Ownership and Management are separated

b. No mutual agency

c. Separate legal entity

d. None of these

43 A characteristic that is common to partnership and corporation is

Select one:

a. None of these

b. Unlimited life

c. Limited liability

d. Both have legal/juridical personality separate from its owners.

44 Management of a corporation rests on its

Select one:

a. President

b. None of these

c. Board of Directors

d. Stockholders

45 Shares with special privileges in dividends and assets of a corporation.

Select one:

a. Ordinary Shares

b. None of these

c. Treasury Shares

d. Preference Shares

46 It is the least number of incorporators of a corporation.

Select one:

a. 3

b. 5

c. 2

d. 4

47 Following are the sources of funds of a corporation, except;

Select one:

a. Issuance of bonds and stocks

b. None of these

c. Long-term corporate loans

d. Contributions by the partners

48 It is a business organization that is defined as an artificial being, created by operation of law.

Select one:

a. Corporation

b. Partnership

c. LLC

d. Sole Proprietorship

49 The feature of a corporation which means that the corporation may continue its operations notwithstanding the death, or incapacity of the board of directors, officers, Shareholders, employees is

Select one:

a. None of these

b. Created by operation of law

c. Rights of succession

d. Artificial being

50 It is the price used to record no par value shares which has no stated price.

Select one:

a. Par value

b. Issue price

c. Fair market value

d. Stockholders' Equity

51It is the government institution that accepts the registration for incorporation.

Select one:

a. Voting rights

b. Securities and Exchange commission

c. Preemptive right

d. By-laws

52 The corporation's own stocks which are issued and reacquired.

Select one:

a. Treasury shares

b. Par value

c. Discount on share capital

d. Fair market value

53 Shares that are issued and later on repurchased by the company.

Select one:

a. Share Premium

b. Treasury shares

c. State Price

d. Market value

54 It is the accumulated company profits from the start of its operations net of the distributed dividends.

Select one:

a. Stock Dividend

b. Ordinary Share

c. Treasury Shares

d. Retained Earnings

55 Ace corporation availed the services of EBC Consultancy Firm. Instead of paying cash, it issued 200 ordinary shares. The market value of the services is P30,000 while the market value of ordinary shares is P130. How much will be credited to Share-Premium-Ordinary?

Select one:

a. P20,000

b. P30,000

c. P500,000

d. P10,000

56 It is the charter governing the creation of the corporation.

Select one:

a. Public Corporation

b. Stock corporation

c. Corporators

d. Articles of Incorporation

57 It is the right of a shareholder to buy additional or new shares of the same class once available for issuance by the corporation.

Select one:

a. Securities and Exchange commission

b. Preemptive right

c. By-laws

d. Voting rights

58 The value of the share of stock stated in the stock certificate.

Select one:

a. Par value

b. Fair market value

c. Issue price

d. Stated price

59 XYZ Corporation is authorized to issue 10,000 ordinary shares par P100 and 5,000, 8% preferred shares par P100. During the month the firm has issued 1/2 of the ordinary shares at P102 each and 1,000 preferred at par, assuming the firm earned a net profit of P300,000 and that it buy back 1,000 shares at P120 each, how much will be reported as the total stockholders' equity at the end of the period?

Select one:

a. P800,000

b. P770,000

c. P790,000

d. P780,000

60 XYZ Corporation is authorized to issue 10,000 ordinary shares par P100 and 5,000, 8% preferred shares par P100. During the month the firm has issued 1/2 of the ordinary shares at P102 each and 1,000 preferred at par. How much will be the total reported ordinary shares in the balance sheet?

Select one:

a. P100,000

b. P50,000

c. P70,000

d. P60,000

61 XYZ Corporation is authorized to issue 10,000 ordinary shares par P100 and 5,000, 8% preferred shares par P100. During the month the firm has issued 1/2 of the ordinary shares at P102 each and 1,000 preferred at par.How much is the dividend per share for XYZ ordinary shares?

Select one:

a. P13.50

b. P11.50

c. P10.50

d. P12.50

62 It is the kind of corporation whose share capital is divided into shares of stock.

Select one:

a. Corporators

b. Stock corporation

c. Public Corporation

d. Articles of Incorporation

63 XYZ Corporation is authorized to issue 10,000 ordinary shares par P100 and 5,000, 8% preferred shares par P100. During the month the firm has issued 1/2 of the ordinary shares at P102 each and 1,000 preferred at par, how much will be shown as the share premium?

Select one:

a. P10,000

b. P20,000

c. P30,000

d. P40,000

64 It is the portion of the balance sheet where treasury shares are presented.

Select one:

a. Ordinary share

b. Retained Earnings

c. Stockholders' Equity

d. Reserves

65 It is the amount of share capital that is contracted to be subscribed by the shareholders and are not yet paid.

Select one:

a. Stated price

b. Subscribed share capital

c. Authorized share capital

d. Ordinary or common shares

66 XYZ Corporation is authorized to issue 10,000 ordinary shares par P100 and 5,000, 8% preferred shares par P100. During the month the firm has issued 1/2 of the ordinary shares at P102 each and 1,000 preferred at par. How much is the amount of Ordinary Shares that will be shown in the stockholders' equity section of the balance sheet?

Select one:

a. P500,000

b. P400,000

c. P300,000

d. P600,000

67 It is the characteristic of corporation that means a shareholder has no personal obligation to the liabilities of the corporation.

Select one:

a. Shareholders

b. Corporation code of the Philippines

c. None of the choices

d. Limited Shareholders' liability

68 If ABS Corporation has the following selected balances: Ordinary Shares issued and outstanding, P 50,000, Share Premium-Ordinary, P65,000; Treasury Shares, P 30,000; Retained Earnings net of dividends of P20,000, P100,000, If the ratio of liabilities to stockholders' equity is 2:3, how much is the total assets?

Select one:

a. P307,333

b. P309,333

c. P306,333

d. P308,333

69 They are the component of a corporation consisting of the incorporators, shareholders or members.

Select one:

a. Stock corporation

b. Articles of Incorporation

c. Corporators

d. Public Corporation

70 The law that was followed in the creation of a corporation.

Select one:

a. None of the choices

b. Shareholders

c. Limited Shareholders' liability

d. Corporation code of the Philippines

71 Assuming the ordinary shares in number 11 was sold at P95 per share.How much will be credited to Ordinary Shares?

Select one:

a. P10,000

b. P20,000

c. P30,000

d. P500,000

72 They are the owners of a corporation.

Select one:

a. Corporation code of the Philippines

b. Shareholders

c. Limited Shareholders' liability

d. None of the choices

73 On July 1 of the current year, Ace Corporation issued 5,000 ordinary shares, P100 par value and 2,000, 5% preference shares, P100 par.The total amount of Share Capital is __________.

Select one:

a. P900,000

b. P100,000

c. P200,000

d. P700,000

74 It is the kind of corporations which are formed for public purposes.

Select one:

a. Public Corporation

b. Corporators

c. Stock corporation

d. Articles of Incorporation

75 Ace corporation availed the services of EBC Consultancy Firm. Instead of paying cash, it issued 200 ordinary shares. The market value of the services is P30,000 while the market value of ordinary shares is P130. How much will be debited to Organization Expenses?

Select one:

a. P500,000

b. P30,000

c. P20,000

d. P10,000

76 It is the kind of shares that has rights to vote and to dividends of the firm.

Select one:

a. Share Buyback

b. Treasury Shares

c. Common stock

d. Stockholder's Equity

77 XYZ Corporation is authorized to issue 10,000 ordinary shares par P100 and 5,000, 8% preferred shares par P100. During the month the firm has issued 1/2 of the ordinary shares at P102 each and 1,000 preferred at par. Assuming XYZ declared a 2 is to 1 stock split for its ordinary shares, how much will the new par value per share?

Select one:

a. P60

b. P70

c. P50

d. P40

78 It is the term used to describe the investments in the corporation from shareholders.

Select one:

a. Issued)

b. Common Stock

c. Par value

d. Contributed Capital

79 It is the term for the excess of par value over the issue price of stock.

Select one:

a. Discount on share capital

b. Stockholders' Equity

c. Fair market value

d. None of the choices

80 XYZ Corporation is authorized to issue 10,000 ordinary shares par P100 and 5,000, 8% preferred shares par P100. During the month the firm has issued 1/2 of the ordinary shares at P102 each and 1,000 preferred at par, assuming the corporation declared dividends of P50,000. How much will the preferred shares received?

Select one:

a. P7,000

b. P6,000

c. P8,000

d. P9,000

81 The price of no par value shares that may be set by the board of directors of the corporation.

Select one:

a. Stated price

b. Authorized share capital

c. Ordinary or common shares

d. Subscribed share capital

82 It is the term to describe the firm's repurchase of shares from its shareholders.

Select one:

a. Retained Earnings

b. Ordinary share

c. Reserves

d. Share Buyback

83 They are the one authorized by the corporation to declared dividends.

Select one:

a. Authorized capital stock

b. Stockholders

c. Board of Directors

d. Corporators

84 It is the stock that is in the hands of a shareholder.

Select one:

a. Par value

b. Paid-in Capital

c. Issued

d. Ordinary Shares

85 The nominal value of the stock that is printed in the stock certificate.

Select one:

a. Issued

b. Paid-in Capital

c. Ordinary Shares

d. Par value

86 If ABS Corporation has the following selected balances: Ordinary Shares issued and outstanding, P 50,000, Share Premium-Ordinary, P65,000; Treasury Shares, P 30,000; Retained Earnings net of dividends of P20,000, P100,000, What is the total Stockholders' Equity?

Select one:

a. P175,000

b. P200,000

c. P195,000

d. P185,000

87 It is the account credited in recording the repurchase of shares.

Select one:

a. Cost

b. None of the above

c. Cash

d. Treasury shares

88 It is the basic unit of ownership in a corporation.

Select one:

a. Authorized share capital

b. Share of Stock

c. None of the choices

d. Share Premium

89 Ace corporation availed the services of EBC Consultancy Firm. Instead of paying cash, it issued 200 ordinary shares. The market value of the services is P30,000 while the market value of ordinary shares is P130. How much will be credited to Ordinary Shares?

Select one:

a. P20,000

b. P30,000

c. P10,000

d. P500,000

90 It is the shares stated in the articles of incorporation approved by SEC to be sold or issued by the corporation.

Select one:

a. Share Premium

b. None of the choices

c. Share of Stock

d. Authorized share capital

91 If the corporation has only one kind of stock, it is referred to as what kind of stock?

Select one:

a. Common Stock

b. Contributed Capital

c. Issued

d. Par value

92 It is the right of a shareholder to elect the board of directors.

Select one:

a. By-laws

b. Preemptive right

c. Voting rights

d. Securities and Exchange commission

93 It is understood to be the kind of stock of the corporation if it has only one kind of shares authorized to be issued.

Select one:

a. Subscribed share capital

b. Stated price

c. Authorized share capital

d. Ordinary or common shares

94 It is the fourth component of SHE which include Revaluation Surplus and Share premium.

Select one:

a. Ordinary Share

b. Reserves

c. Treasury Shares

d. Share Buyback

95 The total assets of the firm amounted to P200,000 while total liabilities 20%. How much is the total stockholders' equity?

Select one:

a. P170,000

b. P150,000

c. P160,000

d. P180,000

96 They are the permanent and continuing rules of action for the governance of the corporation and its people.

Select one:

a. Securities and Exchange commission

b. Voting rights

c. By-laws

d. Preemptive right

97 Another term for additional paid-in capital.

Select one:

a. Share Premium

b. Share of Stock

c. Authorized share capital

d. None of the choices

98 It is the value used to record non-cash assets paid by the issuance of shares of stock.

Select one:

a. Cost

b. Fair market value

c. Treasury shares

d. Par value

99 Generally, it is the basis of recording repurchase of shares.

Select one:

a. Treasury shares

b. Cash

c. Reserves

d. Cost

100 The shares of stocks of a corporation can be transferred to another person without the consent of all the shareholders.

Select one:

True

False

101 The corporation has a life of 50 years and cannot be renewed.

Select one:

True

False

102 Asset revaluations always resulted to an increase in the total assets transferred to the corporation.

Select one:

True

False

103 Incorporating a partnership always requires an adjustment of its assets before transferring to the corporation.

Select one:

True

False

104 The partners decided to convert their business to a corporation and invited their friends C, D, and E to join them. The authorized capital of the corporation is 50,000 shares, P100 par per share.Subscriptions at par value were as follows A - 13,000 shares; B- 9,000shares; C- 20,000shares; D- 5,000 shares; and E - 1,000 shares.

They all agreed that a goodwill of P700,000 will be given to the partnership.Payments for the subscriptions are as follows: A and B, their partnership business; C paid Delivery trucksand Equipment worth P1,800,000 and cash for the balance; D and E paid in cash.

The partnership's total liabilities and Capital after goodwill is_____.

Select one:

a. P2,350,000

b. P2,700,000

c. P2,000,000

d. P3,050,000

105 The partners decided to convert their business to a corporation and invited their friends C, D, and E to join them. The authorized capital of the corporation is 50,000 shares, P100 par per share.Subscriptions at par value were as follows A - 13,000 shares; B- 9,000shares; C- 20,000shares; D- 5,000 shares; and E - 1,000 shares.

They all agreed that a goodwill of P700,000 will be given to the partnership.Payments for the subscriptions are as follows: A and B, their partnership business; C paid Delivery trucksand Equipment worth P1,800,000 and cash for the balance; D and E paid in cash.

The cash paid by D is _____

Select one:

a. P540,000

b. P530,000

c. P502,000

d. P500,000

106 The partners decided to convert their business to a corporation and invited their friends C, D, and E to join them. The authorized capital of the corporation is 50,000 shares, P100 par per share.Subscriptions at par value were as follows A - 13,000 shares; B- 9,000shares; C- 20,000shares; D- 5,000 shares; and E - 1,000 shares.

They all agreed that a goodwill of P700,000 will be given to the partnership.Payments for the subscriptions are as follows: A and B, their partnership business; C paid Delivery trucksand Equipment worth P1,800,000 and cash for the balance; D and E paid in cash.

The cash paid by C is _____.

Select one:

a. P280,000

b. P240,000

c. P200,000

d. P300,000

107 The partners decided to convert their business to a corporation and invited their friends C, D, and E to join them. The authorized capital of the corporation is 50,000 shares, P100 par per share.Subscriptions at par value were as follows A - 13,000 shares; B- 9,000shares; C- 20,000shares; D- 5,000 shares; and E - 1,000 shares.

They all agreed that a goodwill of P700,000 will be given to the partnership.Payments for the subscriptions are as follows: A and B, their partnership business; C paid Delivery trucksand Equipment worth P1,800,000 and cash for the balance; D and E paid in cash.

The share of A in the goodwill is _____

Select one:

a. P400,000

b. P380,000

c. P420,000

d. P450,000

108 The partners decided to convert their business to a corporation and invited their friends C, D, and E to join them. The authorized capital of the corporation is 50,000 shares, P100 par per share.Subscriptions at par value were as follows A - 13,000 shares; B- 9,000shares; C- 20,000shares; D- 5,000 shares; and E - 1,000 shares.

They all agreed that a goodwill of P700,000 will be given to the partnership.Payments for the subscriptions are as follows: A and B, their partnership business; C paid Delivery trucksand Equipment worth P1,800,000 and cash for the balance; D and E paid in cash.

The total amount of authorized shares is ____.

Select one:

a. P4,000,000

b. P3,000,000

c. P5,000,000

d. P6,000,000

109 The partners decided to convert their business to a corporation and invited their friends C, D, and E to join them. The authorized capital of the corporation is 50,000 shares, P100 par per share.Subscriptions at par value were as follows A - 13,000 shares; B- 9,000shares; C- 20,000shares; D- 5,000 shares; and E - 1,000 shares.

They all agreed that a goodwill of P700,000 will be given to the partnership.Payments for the subscriptions are as follows: A and B, their partnership business; C paid Delivery trucksand Equipment worth P1,800,000 and cash for the balance; D and E paid in cash.

The total non-current assets of the partnership prior to its incorporations before goodwill is _____.

Select one:

a. P1,250,000

b. P1,500,000

c. P1,000,000

d. P2,000,000

110 If total assets are P450, 000, total liabilities and equity is also P450, 000.

Select one:

True

False

112 Which is not true about adjusting entries?

Select one:

a. Adjusting entries can have a debit or credit to cash account.

b. Adjusting entries are merged with the unadjusted trial balance account balances to arrive at the adjusted trial balance.

c. Adjusting entries are done at the end of the accounting period.

d. Adjusting entries requires an entry debiting or crediting a nominal account and debiting or crediting a permanent account.

113 Sorting and grouping the transactions recorded under their category or account is what accounting phase?

Select one:

a. Summarizing

b. Recording

c. Classifying

d. Interpreting the results

114 After the closing entries are posted in the ledger, all the nominal accounts will have zero balances.

Select one:

True

False

115 Industry can be the only contribution of a partner.

Select one:

True

False

116 Transfer of interest of one partner to a third person should be approved by all the partners.

Select one:

True

False

117 The partnership and the partners are separate and distinct personalities.

Select one:

True

False

118 Following are examples of asset accounts except;

Select one:

a. Accounts Receivable

b. Prepaid Insurance

c. Supplies

d. Depreciation

119 A partner who is not known as a partner and does not participate in running the affairs of the partnership is a

Select one:

a. Nominal partner

b. Silent partner

c. Dormant partner

d. Secret partner

120 An orally formed partnership requires a written Articles of partnership.

Select one:

True

False

121 A partner's contribution to the partnership is always equal to his capital credit.

Select one:

True

False

122 General partnership should be comprised of general and limited partners.

Select one:

True

False

123 All the partnerships and their member-partners have unlimited liability to the obligations of the partnership in cases where it can no longer meet its debts in the event of liquidation.

Select one:

True

False

124 Universal partnership of all present properties is one where all the properties of the parties at the time of conception of the partnership becomes common properties of all the partners but not profits derived from them.

Select one:

True

False

125 A partner who has no contribution to partnership but allows his/her name to be used by the firm is a

Select one:

a. Nominal partner

b. Dormant partner

c. Silent partner

d. Secret partner