What is the correct answer to the question? 24. Which of the following statementsabout partnership accounts is true?*a. Two accounts are generally maintained foreach partner, a drawing account and a capitalaccountb. The drawing account is credited with apartner's withdrawals of cash or other assetsduring the periodc. Answer (a) is correct but (b) is falseO d. Answers (a), (b), and (c) are all correct

24. Which of the following statements about partnership accounts is true? • a. Two accounts are generally maintained for O each partnet, a drawing account and a capital account b. The drawing account is credited with a O partner's withdrawals of cash or other assets during the period O c. Answer (a) is correct but (b) is false O d. Answers (a), (b), and (c) are all correct

24. Which of the following statements about partnership accounts is true? • a. Two accounts are generally maintained for O each partnet, a drawing account and a capital account b. The drawing account is credited with a O partner's withdrawals of cash or other assets during the period O c. Answer (a) is correct but (b) is false O d. Answers (a), (b), and (c) are all correct

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter19: Accounting For Partnerships

Section: Chapter Questions

Problem 2MC

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When a partnership dissolves, the first step in the dissolution process is to ________. A. allocate the gain or loss on sale based on income sharing ratio B. pay off liabilities C. sell noncash assets D. divide the remaining cash among the partners
When a partnership dissolves, the last step in the dissolution process is to ________. A. allocate the gain or loss on sale based on income sharing ratio B. pay off liabilities C. sell noncash assets D. divide the remaining cash among the partners
What type of assets may a partner not contribute to a partnership? A. accounts receivable B. furniture C. equipment D. personal credit cards
1. Which of the following statements about partnership accounts is true? A. Two accounts are generally maintained for each partner, a drawing account and a capital account. B. The drawing account is credited with the partner’s withdrawal of cash or other assets during the period. C. Answer (A) is correct but (B) is false. D. Answers (A) and (B) are both correct 2. S1: If the partners did not agree as to how profits are to be divided, then such should be divided among partners equally. S2: Interest based on partner’s capital are always provided. a. both statements are true b. both statements are false c. only S1 is true d. only S1 is false. 3. S1: The form and content of the Changes in Owners’ Equity of a partnership are similar to that of a sole proprietorship with no exceptions. S2: In the entry to record distribution of net profits, the revenue and expense summary account is credited. a. both statements are…