Macau and Horcica are forming a partnership Majesu will rest equipment that currently is being used by another business owned by Majesu. The equipment has a fair market value of $45,000. Also, the partnership will assume responsibility for a $10,000 note secured the equipment. Horcica will invest $25,000 cash On the books of the partnership the amount to be recorded as a credit to Majeau's capital account is 24:30 Multiple Choice O 10,000 $55,000 0 $25.000 A partnership designed to protect innocent partners from malpractice or negligence claims resulting from acts of another partner is a Multiple Choice Limited liability partnership Limited liability company General partnership QUIZ Surved The difference between the amount received from a note payable and the amount repaid is 11 Multiple Choice 8 02:48:16 discount principal face value Neytt > 2 2. Hook Co. signed a $12,000. 120-day, 5% interest-bearing note payable at the bank in exchange for cash. Which of the following journal entries should Hook Co use to record the note? Long term liabilities 13 Multiple Choice 8 02:47:51 are sometimes reported on the income statement O are obligations requiring payment within one year or less are liabilities arising from future events The withdrawals account of each partner is 14 Multiple Choice 8 02:47:42 O Debited when closed to his/her capital account O A permanent account and not closed O Credited with his/her share of profit 1 Saved The current portion of long-term debt 15 Multiple Choice 8 02:47:24 Must be disclosed O All of these is shown separately from the long-term portion on the balance sheet Swed Help Save & Exit Subr 5 Management can withhold any information regarding future events if releasing the information could cause a share price decline 47:22 True or False True False When a partner is unable to pay a capital deficiency 17 Multiple Choice 8 02:47:12 The partnership ends The deficiency is absorbed by the remaining partners The deficient partner has a personal liability to the other partners An estimated liability 18. Multiple Choice 8 02:47:02 Can be the result of a lawsuit Is a known obligation of an uncertain amount None of these A capital deficiency means that 19 Multiple Choice 02:40:40 The partnership has more liabilities than assets. O At least one partner has a credit balance in his/her capital account. The partnership has been sold at a loss