. Which of the following statements is correct? O A. The liability of the partners for the debts of the partnership is limited to the amounts invested by each partner. OB. The lifespan of a partnership is perpetual. O C. A loan cannot be obtained in the name of the partnership. OD. A partnership business is liable for its own taxes on the profits earned.

1. What is KW Partnership’s ordinary business income (loss)? 2. Which of the following items are separately stated?

Assess the truth of this statement: One of the rules of debits and credits and account balances for a partnership is that increases in expense accounts are always debited to the expense account. This statement is true. O This statement is false. O There is not enough information to determine whether or not this statement is true. O This statement is not applicable to accounting concepts.

Which statement is FALSE when describing the withdrawal of a partner? O It can be paid for from partners' personal assets. O It can be paid for from partnership assets. O Paying with partnership assets affects only the remaining partners' capital accounts. O Paying with partners personal assets affects only the remaining partners' capital accounts.

Which of the following is a disadvantage of general partnerships? a) A partner who withdraws from a partnership cannot be held liable for any debts the firm had at the time of withdrawal. b) Compared to the other forms of ownership, the paperwork and costs involved in forming a general partnership are the most extensive. c) All general partners have unlimited liability for the debts and obligations of their business. d) The partners in a general partnership are exposed to double taxation.

For partnerships, the qualified business income (QBI) items reported on Schedule K-1 should include the Section 199A business income, the W-2 wages of any qualified trade or business, and:    Guaranteed payments made to the partners in lieu of salary.  Recapture of investment credit.  The unadjusted basis of qualified property.  The adjusted basis of qualified property.

Which of the following is true regarding capital deficiencies? O a Ob Oc Od The partners do not have a legally enforceable claim against the partner with the capital deficiency. If a partner with a capital deficiency is unable to pay the amount owed to the partnership, the partners with debit balances must absorb the loss. The loss is allocated based on the profit and loss ratios between the partners whether with credit or debit balances. if the partner with the capital deficiency pays the amount owed to the partnership, the deficiency is eliminated.

Which of the following statements regarding partnerships is true? a. Partnership income is taxed in the partnership. b. Partnership losses cannot be offset against the partners other income c. Partnership income is included in a partners income in the year of disbursement. d. Partnerships may earn business income, property income, and capital gains.

Julie contributes, as part of her initial investment, accounts receivable with an allowance for doubtful accounts. Which of the following reflects a proper treatment? O The accounts receivable and allowance should not be recorded on the books of the partnership because a partner must invest cash in the business. O The balance of the accounts receivable account should be recorded on the books of the partnership at its net realizable value. O The allowance account may be set up on the books of the partnership because it relates to the existing accounts that are being contributed. O The allowance account should not be recorded in the books of the partnership.

Which of the following regarding partnership taxation is INCORRECT?   Question 16 options:   A partnership is a tax paying entity for Federal income tax purposes.   Partnership income is comprised of ordinary partnership income or loss and separately stated items   A partnership is required to file a return with the IRS.    A partner’s profit-sharing percent may differ from the partner’s loss-sharing percent.   All of these statements are correct.