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WorksheetsPARTNERSHIP AND CORP - GENERAL CONCEPT AND FORMATION
Total questions: 10
Worksheet time: 3mins
This is the most equitable way of distributing profit
average capital
beginning capital
ending capital
original capital
This partner does not share in the losses incurred by the partnership
limited partner
general partner
industrial partner
capitalist partner
Properties contributed by the partners should be recorded at
acquisition cost
fair market value
book value
historical cost
A and B are partners, but only A is the managing partner, both contributed equal assets. the best profit-sharing ratio will be
Equally
Salary to A and B remaining profit to be shared equally
Salary to A, remaining profit to be shared equally
1:1 ratio
All except one may be given to a partner whether the operation is a net profit or a net loss
salaries
bonus
interest
regular drawing
Account receivable invested by a partner should be recorded at its
realizable value
book value
gross amount
market value
statement 1: all partnership are required to file and pay taxes
statement 2: A partnership has an indefinite life like a corporation
only first statement is true
only second statement is true
both statements are true
none of the statements are true
Statement 1: In the absence of an agreement , net income or net loss will be distributed equally Statement 2: A limited partner shares in the profits but not in the losses of the partnership
only first statement is correct
only second statement is correct
both statements are correct
none of the statements are correct
Statement 1: A debit balance in the Income and Expense Summary represent net loss
Statement 2: Giving salary allowance to a partner is a mechanism of distributing profit in recognition of the partner's investment in cash and or property
only first statement is true
only second statement is true
both statements are true
None of the statements are true
Statement 1: This agreement is valid , A & B invested 100,000 each in the partnership but agreed to divide profits and losses in a 2:1 ratio
Statement 2: Interest given to partners based on their contributions are expense subject to tax
only first statement is true
only second statement is true
both statements are true
none of the statements are true
