Write TRUE is the statement is TRUE and write FALSE if the statement is incorrect. 1.In the partnership books, there are as many capital and drawing accounts as there are partners. 2. A partner's contribution in the form of noncash asset should be recorded at its fai market value even if there is agreed capital. 3. A partnership is much easier and less expensive to organize than a corporation

Write TRUE is the statement is TRUE and write FALSE if the statement is incorrect. 1.In the partnership books, there are as many capital and drawing accounts as there are partners. 2. A partner's contribution in the form of noncash asset should be recorded at its fai market value even if there is agreed capital. 3. A partnership is much easier and less expensive to organize than a corporation

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter21: Partnerships

Section: Chapter Questions

Problem 5BCRQ

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Any assets invested by a particular partner in a partnership ________. A. do not become a partnership asset but instead remain with the partner B. can be used only by the investing partner C. become the property of all the partners D. are the basis for all profit sharing
Which one of the following would not be considered in the development of a partnership agreement? A. profit and loss levels B. processing disputes C. stock options D. asset contributions
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 is liquidated, any gains or losses realized by the sale of noncash assets are allocated to the partners based on their income sharing ratio. Why?
When a partnership liquidates, do partners get paid first or do creditors get paid first?
Write TRUE is the statement is TRUE and write FALSE if the statement is incorrect. 1. In the partnership books, there are as many capital and drawing accounts as there are partners. 2 A partner's contribution in the form of noncash asset should be recorded at its fai market value even if there is agreed capital. 3. A partnership is much easier and less expensive to organize than a corporation. 4. A newly organized partnership should always open a new set of books for its use. 5. All partnerships have general partners. 6. Each partner generally has the authority to enter into contracts which are binding upon the partnership. 7. The property invested in a partnership by the partner becomes the property of the partnership.
Which of the following statements is most true? a. The liability for other partners’ wrong doings is limited to the amount a particular partner has invested in the partnership. b. Partnerships are formed in accordance with specific guidelines that include the filing of a formal written agreement to the government. c. A fast growing firm would be more probable to establish a partnership as its business form than would a slow growing firm. d.Corporations can easier attract investors than those of the partnership and sole proprietor businesses.
Which of the following statements is correct when a new product is admitted to an existing partnership by purchasing a portion of a capital interest of an existing partner? A. The partnership will recognize gain or loss in the transfer of capital from one partner to another partner. B. It will result to revaluation or impairment of existing assets of the partnership C. It will just result to credit to capital of newly admitted partner with corresponding debit to capital of the selling partner D. The partnership is not dissolved by the admission of a new partner by purchase
4. In the partnership books, there are as many capital and drawing accounts as there are partners. 5. A partner's contribution in the form of noncash asset should be recorded at its fair market value even if there is agreed capital. 6. A partnership is much easier and less expensive to organize than a corporation.
Which statement is incorrect? -All partnerships should have at least one general partner. -A partner can dispose of his share in partnership profits only with the consent of the other partners. -A silent partner is one who does not take active part in partnership operations but is known by the public as a partner. -When two sole proprietorships form a partnership, agreed adjustments on the value of assets and liabilities of each sole proprietorship should accrue to the benefit or loss of the sole proprietor, not to the partnership. -none of the above The following ends the life of a partnership, except * -Bankruptcy -A new partner is accepted in the partnership -Accomplishment of the specific objective for which the partnership was formed -Death or incapacity of any partner -Answer not given