The advantages of a partnership do not include:

a.

unlimited liability.

b.

ease of formation.

c.

ease of decision-making.

d.

freedom from government regulation.

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

a.

appraised values.

b.

cost.

c.

fair values.

d.

book values

Louisa purchases 50% of Lemons capital interest in the K & L partnership for $22,000, If the capital balance of Kate and Lemon are $40,000 and $30,000, respectively, Louisas capital balance following the purchase is:

a.

$22,000.

b.

$15,000.

c.

$20,000.

d.

$35,000.

Two methods of accounting for uncollectible accounts are the

a.

direct write-off method and the accrual method.

b.

allowance method and the accrual method.

c.

direct write-off method and the allowance method.

d.

allowance method and the net realizable method.

The NBC Company reports net income of $60,000. If partners N, B, and C have an income ratio of (5,3,2) respectively, Cs share of the net income is:

a.

$12,000.

b.

No correct answer is given.

c.

$30,000.

d.

$18,000.