Matching Question 207 Match the following statements to the appropriate terms. Each partner is personally and individually liable for partnership debts. Made on basis of partners' capital balances. Explains changes in individual partner's capital accounts during a period. Each partner can bind the partnership so long as the action appears to be appropriate for the partnership Business terminates. Results in an increase in total net assets and total capital of the partnership Capital account with a debit balance. The basis for sharing income and losses. Total net assets and total capital of the partnership do not change. Written contract establishing duties and responsibilities of partners. Matching Question 207 Match the following statements to the appropriate terms. Each partner is personally and individually liable for partnership debts. Made on basis of partners' capital balances. Explains changes in individual partner's capital accounts during a period. Each partner can bind the partnership so long as the action appears to be appropriate for the partnership Business terminates. Results in an increase in total net assets and total capital of the partnership Capital account with a debit balance. The basis for sharing income and losses. Total net assets and total capital of the partnership do not change. Written contract establishing duties and responsibilities of partners. Income ratio Unlimited liability Purchase of an interest Partnership liquidation Capital deficiency Partners' capital statement Distribution of cash to partners in liquidation of a partnership Admission by investment Partnership agreement Mutual agency