College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN: 9781305666160
Author: James A. Heintz, Robert W. Parry
Publisher: Cengage Learning
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Question
Chapter 19, Problem 3TF
To determine
Identify whether the given statement is true or false.
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The following are rights of a partner in a partnership, except one:
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Right to compensation
Right to information
Right to return of capital
Right to agency
Which one of the following statements is true regarding a partner's personal liability for partnership debts?
In a limited partnership, all partners have limited liability for partnership debts
In a general partnership, all partners are liable for entity debts.
In a limited liability partnership, a partner might be subject to liability for other partners' malpractice.
LLC members can never be liable for entity debts.
Which of the following is not a characteristic of a partnership?
A. The partnership itself pays no income taxes.
B. It is easy to form a partnership.
C. Any partner can be held personally liable for all debts of the business.
D. A partnership requires written Articles of Partnership.
E. Each partner has the power to obligate the partnership for liabilities.
Chapter 19 Solutions
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Ch. 19 - Prob. 1TFCh. 19 - Prob. 2TFCh. 19 - Prob. 3TFCh. 19 - Prob. 4TFCh. 19 - Prob. 5TFCh. 19 - Prob. 1MCCh. 19 - Prob. 2MCCh. 19 - Prob. 3MCCh. 19 - Prob. 4MCCh. 19 - Prob. 5MC
Ch. 19 - Prob. 1CECh. 19 - Prob. 2CECh. 19 - Prob. 3CECh. 19 - Prob. 4CECh. 19 - Prob. 5CECh. 19 - Prob. 1RQCh. 19 - Prob. 2RQCh. 19 - Prob. 3RQCh. 19 - Prob. 4RQCh. 19 - Prob. 5RQCh. 19 - Prob. 6RQCh. 19 - Prob. 7RQCh. 19 - Prob. 8RQCh. 19 - Prob. 9RQCh. 19 - Prob. 1SEACh. 19 - Prob. 2SEACh. 19 - Prob. 3SEACh. 19 - Prob. 4SEACh. 19 - ENTRIES: PARTNERSHIP LIQUIDATION On liquidation of...Ch. 19 - Prob. 6SPACh. 19 - Prob. 7SPACh. 19 - Prob. 8SPACh. 19 - Prob. 9SPACh. 19 - STATEMENT OF PARTNER SHIP LIQUIDATION WITH LOSS...Ch. 19 - Prob. 1SEBCh. 19 - Prob. 2SEBCh. 19 - Prob. 3SEBCh. 19 - Prob. 4SEBCh. 19 - Prob. 5SEBCh. 19 - Prob. 6SPBCh. 19 - Prob. 7SPBCh. 19 - ENTRIES FOR DISSOLUTION OF PARTNERSHIP Cummings...Ch. 19 - Prob. 9SPBCh. 19 - STATEMENT OF PARTNER SHIP LIQUIDATION WITH LOSS...Ch. 19 - Prob. 1MYWCh. 19 - Prob. 1ECCh. 19 - Prob. 1MPCh. 19 - Prob. 1CPCh. 19 - Prob. 1COP
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- What is the nature of liability of general partners as to partnership debts or obligations? A. the are liable solidarily up to the extent of their separate assets after the partnership asses are exhausted B. they are liable pro-rata up to the extent of their capital contribution only C. they are liable pro-rata to the extent of their separate assets after the partnership assets are exhausted D. the are liable equally up to the extent of their separate assets after the partnership assets are exhaustedarrow_forwardWhat is the proper disposition of a partnership loan that was made from a partner who has a debit balance in the capital account?  A. The loan is ignored in liquidation.  B. The loan is offset against the debit balance in the capital account.  C. The loan is charged off to the capital accounts of all the partners in their profit and loss sharing ratios.  D. The loan is held for payment after all other capital accounts are covered.arrow_forwardWhich of the following is NOT a characteristic of a partnership?  a. Partners have mutual agency b. Partners are able to contract on behalf of the partnerships. c.Partnership income is tax free  d.Partnerships are easy to formarrow_forward
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- 1. A partnership contract should always be prepared regardless of the amount or nature of the contribution.   2. All types of partnerships are subject to income tax.        3. A partner's contribution in the form of industry will require a debit to the account "Industry"    4. In the partnership books, there are as many capital and drawing accounts as there are partners.    5. A partner's contribution in the form of noncash asset should be recorded at its fair market value even if there is agreed capital. 6. A partnership is much easier and less expensive to organize than a corporation.      7. A newly organized partnership should always open a new set of books for its use.     8. All partnerships have general partners.         9. Each partner generally has the authority to enter into contracts which are binding upon the partnership.   10. The property invested in a partnership by the partner becomes the property of the…arrow_forwardIf no agreement exists in a partnership as to the allocation of income, what method is appropriate?   a. receives equal allocations.   b. receives an amount equal to their contributions.   c. receives amounts based on their balance in their partnership capital accounts.    d. receives an amount equal to the losses.arrow_forwardWhen the profit and loss agreement provides for the allowance of interest on partner's equity and salaries to partners, why are the partners entitled to these allowances even if the partnership operations results in a loss?arrow_forward
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