Partnership Accounting

How many people can make up a partnership?

• 2-22

• 2-20

• 2

• 2-12

What type of partner is outlined below:

A partner with unlimited liability for all the business debts

• Active/General

• Sleeping

• Limited

• Named

What type of partner is outlined below:

A partner not involved in the day-to-day running of the business

• Active/General

• Limited

• Liability

• Sleeping

The amount of control each parter has is determined formally through a legal document known as a....

• Partnership Staus

• Partnership Agreement

• Partnership Legality

• Partnership Creed

Which of the following is NOT an element of a Partnership Agreement?

• Rights and duties of each partner

• Division of profit and losses

• Salaries (if any) to be paid to partners

• Partner debit card PIN codes in case of emergency

What happens if there is no partnership agreement in writing?

• The partnership cannot legally exist

• The partner who invested the most equity automatically has the deciding vote

• The government will provide 30 days notice to create a partnership agreement

• The Partnership Act 1890 will automatically apply

Which of the following is NOT an advantage of forming a partnership?

• Sharing of management and control

• Opportunities for specialisation

• More finance than a sole trader, and greater borrowing power

• Higher chance of arguments

Which of the following is a NOT a disadvantage of forming a partnership?

• Business will require to be ended on the death of any partner

• Disagreements can occur

• Unlimited liability for debts

• Greater variety of skills and strenghs

 One advantage of a partnership is 

• ease of formation
•  limited liability
• c. unlimited life of the partnership
• limited vision and skills.

 When a partner invests in office equipment, the entry includes a

• a. debit to the partner’s capital account.
• debit to Office Equipment.
• credit to Cash.
• credit to Office Equipment.