Partnership Accounting Quiz 1

Statement 1: A partnership is an organization where two or more persons bind themselves to contribute money, property, or industry into a common fund with the intention of dividing the profits among themselves.

Statement 2: Regardless if it is oral or in writing, as long as the contract is valid, the Partnership is also valid.

• True, True

• True. False

• False, True

• False, False

Statement 1: A limited partner can contribute either money, property or industry to the partnership.

Statement 2: Only the name of the general partners can be part of the partnership name.

• True, True

• True, False

• False, True

• False, False

Statement 1: Partnership is always taxable like corporation.

Statement 2: Both partnership and corporation has unlimited liability and limited life.

• True, True

• True, False

• False, True

• False, False

Statement 1: If the contribution is in the form of immovable property, the contract should be in writing.

Statement 2: The partnership should be registered with SEC if the total capital is 3000 or more, otherwise the partnership will be invalid.

• True, True

• True, False

• False, True

• False, False

Statement 1: All Limited Partners are Capitalist Partner but not all capitalist partner are general partner

Statement 2: All industrial partners are general partners but not all general partners are capitalist partner

• True, True

• True, False

• False, True

• False, False

Statement 1: As a rule, All partners can participate on the management except for Limited partner and if there is appointed manager.

Statement 2: The name of the partnership should be unique and not misleading.

• True, True

• True, False

• False, True

• False, False

The following are the benefits of being registered to SEC, except?

• Issuance of license to operate

• Can evade tax liabilities

• Availability of financial statements for the public

• none of the above

A partnership were all partners are general partner

• General partnership

• Limited Partnership

• General Limited Partnership

• None of the above

One who can manage the partnership, can contribute money, property and industry, and has unlimited liability.

• General Partner

• Limited Partner

• Capitalist Partner

• Industrial Partner

True or False

A Nominal Partner is a partner in name only but has the same liability as a real partner to the third parties.

• True

• False