1 In preparing closing entries of the partnership,- a) all nominal accounts are reduced to zero balance b) Income & Expense Summary is closed to Capital Account c) Income & Expense Summary is closed to Drawing Account d) Drawing Account is left open 3) Failure to stipulate on how profit and loss be divided among partners. It should be- a) in proportion to what has been contributed b) settled in the court of law c) equally divided d) by other legal means agreeable among partners 4) In case the partnership makes profit, how will an industrial partner be given a share? a) what is just equitable b) equally c) arbitrarily d) depending on the court's decision 5) A partner who contributes money or property as well as his work or industry to the partnership is a/an- a) industrial partner b) capitalist-industrial partner c) capitalist partner d) dormant partner

1 In preparing closing entries of the partnership,- a) all nominal accounts are reduced to zero balance b) Income & Expense Summary is closed to Capital Account c) Income & Expense Summary is closed to Drawing Account d) Drawing Account is left open 3) Failure to stipulate on how profit and loss be divided among partners. It should be- a) in proportion to what has been contributed b) settled in the court of law c) equally divided d) by other legal means agreeable among partners 4) In case the partnership makes profit, how will an industrial partner be given a share? a) what is just equitable b) equally c) arbitrarily d) depending on the court's decision 5) A partner who contributes money or property as well as his work or industry to the partnership is a/an- a) industrial partner b) capitalist-industrial partner c) capitalist partner d) dormant partner

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter14: Partnerships And Limited Liability Entities

Section: Chapter Questions

Problem 29P

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