Last one for the night. Thank you. Question 1.1.When a partnership goes through ________, all of the assets are sold and the liabilities are paid off. (Points : 1)

formation termination dissolution liquidation

Question 2.2.A limited partnership_______. (Points : 1)

must have at least two general partners is illegal in most states must have at least one general partner none of the above

Question 3.3.The profits of a general partnership_______. (Points : 1)

are not taxable pass through the business to the partners are not taxable unless the partnership has over $250,000 in net income cannot exist unless the partnership has a limited partner

Question 4.4.The partnership characteristic of co-ownership of property states that_______. (Points : 1)

any asset a partner invests in the partnership becomes the joint property of all the partners general partners co-own all assets, but limited partners do not general partners own a larger percentage of the assets of a partnership than do limited partners all partnership assets are co-owned by any banks making loans to the partnership

Question 5.5.An income statement of a partnership differs from an income statement of a corporation or proprietorship in that a partnership income statement includes ________. (Points : 1)

an allocation of net income/loss to partners a calculation of the increase/decrease of partners capital accounts a calculation of the increase/decrease of retained earnings partnership draws as an expense reported in the operating section

Question 6.6.Richard invests $20,000 cash and Roxanne invests $30,000 cash in their new partnership. Which of the following is the balance in Richard's capital account? (Points : 1)

$25,000 $30,000 $20,000 $15,000

Question 7.7.If the partnership agreement does not stipulate how profits and losses will be divided, then by law, partners must share profits and losses_______. (Points : 1)

based on a ratio of time devoted to the business in the ratio of their capital balances equally in the same proportion as their initial investments

Question 8.8.Which of the following is a written agreement between the partners of a partnership that increases the chances that the partners understand how the business is run? (Points : 1)

Articles of assets Articles of incorporation Articles of business agreement Articles of partnership

Question 9.9.Which of the following is TRUE of the net business profit of the partnership? (Points : 1)

The profits of a partnership are not taxable unless the partnership has over $250,000 of net profits. The profits of a partnership are only taxable to the limited partners. The profit is not taxable. The profits of the partnership pass through the partnership to be taxed to the partners.

Question 10.10.Which of the following must happen when a new partner is admitted to the partnership? (Points : 1)

a new partnership agreement must be established the assets must be revalued assets are sold and liabilities are paid off cash is distributed to the existing partners based on their capital balances

Question 11.11.Which of the following is included on a partnership income statement? (Points : 1)

A list of all of the partners' drawing account balances A section showing the allocation of net income to the partners A list of all of the partners' capital account balances None of the above

Question 12.12.Partnership XYZ is made up of Partner X, Partner Y, and Partner Z. Profits and losses are allocated to partners in a ratio of 4:3:1, respectively. Partnership XYZ reported a loss of $15,000 in 20X2. What effect did this loss have on Partner Ys capital account? (Points : 1)

increased by $15,000 decreased by $5,625 increased by $1,875 decreased by $5,000

Question 13.13.After a partner decides to withdraw from a partnership, which of the following occurs when the withdrawing partner receives more cash than the amount in his or her capital account? (Points : 1)

The capital accounts must be revalued. The partnership recognizes a gain. The partnership recognizes a loss. The difference in the capital account and the cash paid must be allocated to the remaining partners based on their profit-and-loss-sharing percentages.

Question 14.14.What is the main difference in the balance sheet of a partnership and the balance sheet of a proprietorship? (Points : 1)

Long-term liabilities list the partner(s) with primary liability. There are two or more capital accounts on a partnership balance sheet. Current assets are presented in a different order. There are no significant differences.

Question 15.15.The IFRS standards for partnership accounting ________. (Points : 1)

describe specific guidelines to follow define broad categories that can be selected offer vague criteria from which companies can choose provide the same standards as other forms of business