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True or false 1. In a general partnership, each partner is individually liable to creditors for debts incurred in by the partnership, to the extent

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1. In a general partnership, each partner is individually liable to creditors for debts incurred in by the partnership, to the extent of the partner's capital balance. 2. A disadvantage of partnerships is the mutual agency of all partners. 3. When compared to a corporation, one of the major disadvantages of the partnership is its limited life. 4 . Each partner has a separate capital and withdrawal account. 5 . When a partner invests noncash assets in a partnership, the assets are recorded at the partner's book value 6 . A corporation is a separate entity for accounting purposes but not for legal purposes. 7. The par value of common stock must always be equal to its market value on the date the stock is issued 8. The number of shares of outstanding stock is equal to the number of shares authorized minus the number of shares issued. 9. When common stock is issued in exchange for land, the land should be recorded in the accounts at the par value of the stock issued. 10. One of the prerequisites to paying a cash dividend is sufficient retained earnings.

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