I. TRUE FALSE STATEMENTS 1. The personal assets, liabilities, and personal transactions of partners are excluded from the accounting records of the partnership. 2. The admission of a new partner results in the legal dissolution of the existing part- nership and the beginning of a new partnership.[ 3. If a partner invests noncash assets in a partnership, they should be recorded by the partnership at their fair market value. A major advantage of the partnership form of organization is that the partners have unlimited liability. Partnership income or loss need not be closed to partners' capital accounts each period because of the unlimited life characteristic of partnerships. 6. An interest allowance in sharing partnership net income (or net loss) is related to the amount of partners' invested capital during the period. 7. Partnership creditors may have a claim on the personal assets of any of the partners if the partnership assets are not sufficient to settle claims. 8. Total partners' equity of a partnership is equal to the sum of all partners' capital account balances 9. The liquidation of a partnership means that a new partner has been admitted to the partnership 10. The partners drawing accounts are closed each period into the Income Summary account