Accounting Review

Ch12MC |

Question 1 | | 1 / 1 point |

If there is no written agreement as to the way income will be divided among partners

Correct Response | | 1) | they will share income and losses equally |

| | 2) | they will share income and losses according to their capital balances |

| | 3) | they will share income and losses according to the time devoted to the business. |

| | 4) | there really is no partnership agreement |

Question 2 | | 1 / 1 point |

A change in the ownership of a partnership results in the

| | 1) | consolidating of the partnership |

| | 2) | liquidating of the partnership |

| | 3) | realization of the partnership |

Correct Response | | 4) | dissolution of the partnership |

Question 3 | | 1 / 1 point |

A partner withdraws from a partnership by selling her interest to another person who currently is not associated with the firm.  As a results of this transaction, the capital account balance of the other partners in the partnership

| | 1) | will increase |

| | 2) | will decrease |

Correct Response | | 3) | will remain the same |

| | 4) | may increase, decrease, or remain the same |

Question 4 | | 0 / 1 point |

When a limited partnership is formed

| | 1) | the partnership activities are limited |

Incorrect Response | | 2) | all partners have limited liability |

Correct Answer | | 3) | some of the partners have limited liability |

| | 4) | none of the partners have limited liability |

Question 5 | | 1 / 1 point |

Izabelle and Marta are forming a partnership. Marta will invest a building with a book value of $30,000 and a fair market value of $35,000.At what amount will...