. 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.

. 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Which statement is true with respect to the tax treatment of a partnership __________? A partnership files an annual information return and the income and expenses associated with the business are reported on the Partners' individual returns. A partnership is required to pay tax annually on its taxable business income A partnership is required to pay tax on gains from the sale of partnership owned assets None of the above
A partnership agreement may NOT include O the method of allocating profits and losses the purpose of the business each partner's duties O the name of the heirs of each of the partners who will inherit the share in the partnership business
I need the answer as soon as possible
Which of the following apply to a partnership that consists solely of general partners? I. Double taxation of partnership profits. II. Limited partnership life. III. Active involvement in the firm by all the partners. IV. Unlimited personal liability for all partnership debts. Group of answer choices II and III only. II only. II, III, and IV only. I and II only. I, II, and IV only.
A partnership * has only one owner. pays taxes on partnership income. must file an information tax return. is not an accounting entity for financial reporting purposes.
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.
A type of partnership where the company cannot pay its debts with business assets, the partners must use personal assets to pay the debt. O Particular partnership O Nominal partnership O General partnership O Trading partnership
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.