True or false choose which True or False:1. All partnerships have general partners.2. Each partner generally has the authority to enter into contracts which are binding upon thepartnership.3. A partner's contribution in the form of non-cash asset should be recorded at its fair market valueeven if there is an agreed value.4.All types of partnerships are subject to income tax.5.If the partners did not agree as to how profits are to be divided, then such should be dividedamong the partners equally.6. All partners, whether capitalist or industrial, are to share on whatever partnership profits or losses.7. The total assets of the partnership will increase upon admission of a new partner by purchase ofinterest.8.The admission of a new partner in an existing partnership dissolves the old partnership.9. Admission of a new partner by purchase of interest is a personal transaction between the sellingpartner and the buying partner. Hence, any indicated gain in the transaction is not recognized inthe partnership books.10. The percentage interest in a partnership is always the same as the profit-sharing ratio.11. If the partnership agreement specifies a method for sharing profits, but not losses, the losses areshared equally.12. Using bonus method, total contributed capital is always equal to total agreed capital.13. Dissolution immediately causes the termination of a firm.14. It is easier to change ownership in a corporation than in a partnership.15. Accounting for the withdrawal of a partner when one of the remaining partners buys the retiringpartner's interest is not the same as when an outside person buys a retiring partner's interest.

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1. All partnerships have general partners. 2. Each partner generally has the authority to enter into contracts which are binding upon the partnership. 3. A partner's contribution in the form of non-cash asset should be recorded at its fair market value even if there is an agreed value.

1. All partnerships have general partners. 2. Each partner generally has the authority to enter into contracts which are binding upon the partnership. 3. A partner's contribution in the form of non-cash asset should be recorded at its fair market value even if there is an agreed value.

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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