Ch. Accounting for partnership

Q1. The statement of partnerships' capital explains the changes in each partner's capital account and in total partnership capital during th year.

Ture or false

Q2. Admission of a new partner to the partnership does not result in the legal dissolution of the exsiting partnership.

True or False

Q3. An advantage of partnerships is mutual agency.

True or False

Q4. Selling partnership assets and playing the proceeds to creditors and owners refers to__

a.mutual agency. b.unlimited liability. c.liquidation d.dissolution

Q5. In a limited partnership, all of the partners have limited liability for the debts of the firm.

True or False

Q6. In a parnership where the devision of profits and losses is based on salaries, interest, and a stated ratio, if the salary and interest allocation will exceed the profit, the profit is allocated only by the stated ration instead.

True or False

Q7. In a limited liability partnership, a partner can be held liable for the negligence of the people directly supervised by that partner.

True or False

Q8. If a partnership is admitting a new partner to the exisitng partnership and the exsiting partners are to receive a bonus, this bonus would be allocated on the basis of their profit and loss ratios before the admission of the new partner.

True or False

Q9.Which one of the following is not a feature of partnership?

a. co-ownership of property b.mutual agency c.limited life b.limited liability

Q10. Upon liquidation, one the assets have been sold and the creditors paid, the final cash is districuted equally amoung partners.

True or False

Q11. A partnership is considered an accounting entity for financial reporting purpose.

True or False

Q12 When the partnership contract not specify the manner in which profits and losses are to be divided, profits and losses are distributed based on the average capital balances of each partner during the year.

True or False