Question 1 (2 points)

Which of the following statements about partnership financial statements is true?

Question 1 options:

	None of the statements are true.
	The distribution of net income is shown on the balance sheet.
	The statement of owner's equity is called the statement of partners' equity.
	Partner capital balances are usually shown in the income statement.

Question 2 (2 points)

The advantages of a general partnership do not include:

Question 3 options:

	Partner's bringing different skills to the business.
	Minimal government regulation
	Ease of formation
	Unlimited liabilty

Question 3 (2 points)

The steps to dissolve a partnership are:

Question 4 options:

	Liquidate the assets, allocate the gain or loss to the partners using the income ratio, pay off the debts, pay out the partners based on their contribution to the partnership.
	Liquidate the assets, allocate the gain or loss to the partners using the percentage ownership of each partner, pay off the debts, pay out the partners based on their capital balance.
	Liquidate the capital accounts, allocate the gain or loss to the partners using the percentage ownership of each partner, pay off the debts, pay out the partners based on their capital balance.
	Liquidate the assets, allocate the gain or loss to the partners using the income ratio, pay off the debts, pay out the partners based on their capital balance.

Upon formation of a partnership, each partners initial investment of assets should be recorded at:

Question 4 options:

	Original cost
	Liquidation value
	Net book value
	Fair market value