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WorksheetsAdvanced Accounting - Chapter 23
Total questions: 15
Worksheet time: 15mins
Name
Class
Date
1.
One advantage of a partnership is
a)
ease of formation
b)
limited liability
c)
c. unlimited life of the partnership
d)
limited vision and skills.
2.
When a partner invests in office equipment, the entry includes a
a)
a. debit to the partner’s capital account.
b)
debit to Office Equipment.
c)
credit to Cash.
d)
credit to Office Equipment.
3.
When a partner withdraws supplies from the partnership, the entry includes a
a)
a debit to the partner’s capital account.
b)
b. a debit to the partner’s drawing account.
c)
a debit to Supplies.
d)
a credit to the partner’s drawing account.
4.
Partnership earnings are divided.
a)
equally
b)
according to how long the partner has been in the business.
c)
according to the age of each partner
d)
according to the partnership agreement.
5.
The last step in liquidating a partnership is
a)
to quit selling products and services.
b)
selling all noncash assets
c)
distributing remaining cash to the partners.
d)
liquidating liabilities
6.
A partner’s drawing account
a)
has a normal debit balance
b)
has a normal credit balance.
c)
can have a normal balance of either a debit or a credit.
d)
increases on the credit side
7.
A disadvantage of a partnership over other forms of business ownership is
a)
being liable for your partner’s actions.
b)
simple tax structure.
c)
having more capital available.
d)
sharing work
8.
When non-cash assets are liquidated and the amount received is less than the book value of the asset liquidated, there is a
a)
net income.
b)
net loss.
c)
gain on the realization.
d)
loss on the realization.
9.
A partnership distribution of net income or net loss is usually shown on
a)
the trial balance.
b)
the balance sheet.
c)
the statement of cash flows
d)
none of these.
10.
Vocabulary
A business in which two or more persons combine their assets and skills.
A business in which two or more persons combine their assets and skills.
a)
Partnership
b)
Partnership Agreement
c)
Partner
d)
Realization
11.
Vocabulary -
A financial statement that summarizes the changes in owner's equity during a fiscal period.
A financial statement that summarizes the changes in owner's equity during a fiscal period.
a)
Stockholder's Statement
b)
Owner's Equity Statement
c)
Partnership Agreement
d)
Income Statement
12.
Vocabulary -
Cash received from the sale of assets during liquidation of a partnership.
Cash received from the sale of assets during liquidation of a partnership.
a)
Liquidation
b)
Distribution
c)
Realization
d)
Actualization
13.
Vocabulary - A written agreement setting forth the conditions under which a partnership is to operate.
a)
Realization Agreement
b)
Partnership
c)
Partnership Agreement
d)
Naturalization Agreement
14.
Vocabulary
The process of paying a partnership's liabilities and distributing remaining assets to the partners.
The process of paying a partnership's liabilities and distributing remaining assets to the partners.
a)
Liquidation of a Partnership
b)
Realization of a Partnership
c)
Actualization of a Partnership
d)
Distribution of a Partnership
15.
Vocabulary
A partnership financial statement showing net income or loss distribution to partners.
A partnership financial statement showing net income or loss distribution to partners.
a)
Actualization of a Net Income Statement
b)
Liquidation of a Net income statement
c)
Realization of Net income statement
d)
Distribution of net income statement
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