Multiple choice:

1. The partnership will be taxed as a separate entity : True or False
2. The proprietary accounts of a partnership are the same as that of a sole trader: True or False
3. One of the benefits of forming a partnership is that if the partnership is sued, the assets of the partners are not at risk: True or False

4. Which one (1) of the following will not constitute a line item on the face of the statement of financial position of a partnership?

1. Current accounts;
2. Undrawn income / Retained earnings ;
3. Capital accounts;
4. Loans from members.