2025_Accounting for Partnerships Quiz

The personal assets, liabilities, and personal transactions of partners are excluded from the accounting records of the partnership.

• TRUE

• FALSE

The act of any partner is binding on all other partners if the act appears to be appropriate for the partnership.

• TRUE

• FALSE

A major advantage of the partnership form of organization is that the partners have unlimited liability.

• TRUE

• FALSE

Partnership creditors may have a claim on the personal assets of any of the partners if the partnership assets are not sufficient to settle claims.

• TRUE

• FALSE

The partnership agreement between partners must be in writing.

• TRUE

• FALSE

If a partner invests noncash assets in a partnership, they should be recorded by the partnership at their fair value.

• TRUE

• FALSE

L. Hampton invests the following assets in a new partnership: $30,000 in cash, and equipment that cost $70,000 but has a book value of $34,000 and fair value of $40,000. Hampton, Capital will be credited for $64,000.

• TRUE

• FALSE

Two proprietorships cannot combine and form a partnership.

• TRUE

• FALSE

If a partner's investment in a partnership consists of equipment that has accumulated depreciation of $8,000, it would not be appropriate for the partnership to record the accumulated depreciation.

• TRUE

• FALSE

If a partner's investment in a partnership consists of Accounts Receivable of $35,000 and an Allowance for Doubtful Accounts of $7,000, it would not be appropriate for the partnership to record the Allowance for Doubtful Accounts.

• TRUE

• FALSE