Kr.nl Forch 1el w tr hapter 12-14) Multiple Choices I. A partnership a. has only one owner b. pays taxes on partnership income. c. must file an information tax return d. is not an accounting entity for financial reporting purposes 2. A general partner in a partnership a has unlimited liability for all partnership debis. b. is always the general manager of the firm. c. is the partner who lacks a specialization. d. is liable for partnership liabilities only to the extent of that partner's capital equity Which one of the following would not be considered a disadvantage of the partnership form of organization? a. Limited life b. Unlimited liability c. Mutual agency d. Fase of formation 4. Which of the following statements about a partnership is correct? a. The personal assets of a partner are included in the partnership accounting records b. A partnership is not required to file an information tax return c. Each partner's share of income is taxable to the partnership d. A partnership represents an accounting entity for financial reporting purposes 5. Partners Gary and Elaine have agreed to share profits and losses in an 80:20 ratio respectively, after Gary is allowed a salary allowance of $30,000 and Elaine is allowed a salary allowance of $15.000. If the partnership had net income of S30,000 for 2017. Elaine's share of the income would be a. $15,000 b. $12.000 c. $18,000 d. $3,000 6. The Partners' Capital Statement for TSB Company reported the following information in total Capital, January .240,000 80,000 160,000 200,000 Drawings.. Net income The partnership has three partners: Toub, Sauls, and Birch with ending capital balances in a ratio 40:20:40. What are the respective ending balances of the three partners? a. Toub, $160,000; Sauls, $80,000; Birch, S160,000. b. Toub, S144,000: Sauls, $72,000; Birch, $144,000 c. Toub, $272.000; Sauls, $136,000; Bireh, $272.000 d. Toub, $180,000: Sauls, $96,00000; Birch, S180,000. 7. The partners' drawing accounts are