Partnership Introduction, Formation, & Operations

Which of the following is NOT a characteristic of ALL partnerships?

• mutual agency

• 
  taxable entity

• co-ownership of property

• voluntary association

The partners have the following rights, EXCEPT

• share in profits

• 
  co-manage the business

• 
  transfer ownership at will

• 
  receive net assets at liquidation point

A partnership has an indefinite life like a corporation.

• T

• F

Access to more capital is an advantage of a partnership over a sole proprietorship.

• T

• F

A partnership that exists indefinitely under its Articles of Partnership

• Trading partnership

• Partnership at will

• Open partnership

• De Jure partnership

When a partner contributes capital that is equal to their share, it is called the full investment approach.

• T

• F

When existing books of one of the partners will be used for the new partnership, there is no need to close any of the accounts in the existing books.

• T

• F

Agreed value first, then fair market value is the order of priority basis for the valuation of assets being contributed by the partners.

• T

• F

Accumulated depreciation and allowance for doubtful accounts will always be found in the books of newly-created partnerships.

• T

• F

Revaluation of assets will normally have an entry crediting the Partner, Capital account.

• T

• F