Question 1 (1 point)

What is the single model used for partnership law?

a	generally accepted accounting principles
b	Certified Partnership Association
c	Uniform Partnership Act
d	none of the above

multiple_choice180712623Question 2 (1 point)

Which of the following requires the preparation of retained earnings?

a	general partnership
b	limited partnership
c	limited liability partnership
d	none of the above

multiple_choice180712659Question 3 (1 point)

Assume that Able and Bart both have a $50,000 interest in a partnership. Now Curt buys Ables share for $60,000. What is the entry in the partnership books for this transaction?

a	DR - cash $60,000 DR capital-Curt
b	DR - capital-Able $50,000 CR capital-Curt $50,000
c	DR - capital-Able $60,000 CR capital-Curt $60,000
d	none of the above

multiple_choice180712475Question 4 (1 point)

Which of the following takes place when a partner retires from a partnership?

a	The partnership liquidates.
b	The partnership stops conducting business until there is a replacement partner.
c	the partner dissociates from the partnership, but the partnership continues.
d	None of the above is true.

multiple_choice180712489Question 5 (1 point)

Which of the following are steps required to determine a new partners capital account balance?

a	receive contribution from new partner
b	determine the amount of contribution retained by current partners
c	determine the amount of bonus paid to current partners or new partner
d	all of the above

multiple_choice180712559Question 6 (1 point)

If a new partner pays more than book value for his investment in a partnership, which of the following is not an option in accounting for his admission on the books of the partnership?

a	assigning a bonus to the prior partners
b	revaluing net assets up to market value and allocating to prior partners
c	both a and b
d	none of the above

multiple_choice180712535Question 7 (1 point)

If a new partner pays more than book value for his investment in a partnership, which of the following is not an option in accounting for his admission on the books of the partnership?

a	Assign a bonus to the prior partners.
b	Record unrecognized goodwill and allocate it to the prior partners.
c	Record no revaluations, bonus, or goodwill.
d	Revalue net assets up to market value and allocate to prior partners.

multiple_choice180712637Question 8 (1 point)

Which of the following have partners that are joint personally liable for each others acts?

a	general partnership
b	limited partnership
c	limited liability partnership
d	none of the above

multiple_choice180712603Question 9 (1 point)

In forming a partnership, Allan contributed 60% of the net assets, Brown contributed 40% and Curt contributed no assets. However, Curt has special expertise in the business undertaken by the partnership. In recognition of this fact, the partnership agreement specifies that Curt is entitled to 10% of the net assets of the business. Profits and losses are shared based upon capital balances. Under the agreement, Browns capital share is:

a	36%
b	40%
c	50%
d	54%

multiple_choice180712649Question 10 (1 point)

Which of the following have limits to the obligations of the partnership or other partners?

a	general partnership
b	limited partnership
c	limited liability partnership
d	both b and c