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AC471 Exam Three Review

Authored by Kennedy Worrell

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AC471 Exam Three Review
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64 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is NOT a characteristic of a partnership?

Must have a profit motive

Can include arrangements to share expenses

Is a flow-through entity

Income and losses are allocated to owners

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the primary tax characteristic of a flow-through entity?

The entity pays income tax on behalf of its owners

The entity's income is taxed at a flat rate

Income and losses are allocated to the owners

The entity is exempt from income tax

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the primary difference between a general partner and a limited partner?

General partners have limited liability, while limited partners have unlimited liability

General partners have management rights, while limited partners do not

General partners are not subject to self-employment tax, while limited partners are

General partners have no liability for partnership debts

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which type of partnership requires filing articles of organization with the state?

General partnership

Limited partnership

Both

Neither

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How is recourse debt allocated in a partnership?

Based on profit-sharing percentages

Only to general partners with economic risk of loss

Equally among all partners

To partners with the highest capital contributions

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

A partner's initial outside basis includes all of the following EXCEPT:

Basis of assets contributed

Share of partnership debt

FMV of partnership distributions

Share of income allocations

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

A partnership can exist even without a profit motive

True

False

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