TRUE OR FALSE22. Salary and interest allowances in a partnership do not affect the measurement of total partnershipincome.23. Partnership drawings are withdrawals of the partners that are closed to the capital accounts at theend of the period.24. When noncash property is contributed to a partnership, it is recorded in the books of the partnershipat its fair value.25. All property brought into the partnership or acquired by the partnership is partnership property.26. If an asset is contributed to the partnership subject to liability, the amount credited to thecontributing partners' capital account is it still equal to the fair market value of the asset.27. It is possible to admit a new partner into the partnership without said partner investing any assetsinto the partnership.28. If salary and interest allocation methods are being used to allocate partnership profits, suchmethods would not be applied in accounting periods when there is a partnership loss.29. When an incoming partner purchase is a partnership interest by making a payment directly to thecurrent partner, no entry will be needed on the partnership books.30. A Partnership interest is considered a personal asset of the partner and may be sold or gifted orconveyed to others in any manner that is legal and acceptable to the other partners.

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22. Salary and interest allowances in a partnership do not affect the measurement of total partnership income. 23. Partnership drawings are withdrawals of the partners that are closed to the capital accounts at the end of the period. 24. When noncash property is contributed to a partnership, it is recorded in the books of the partnership at its fair value.

22. Salary and interest allowances in a partnership do not affect the measurement of total partnership income. 23. Partnership drawings are withdrawals of the partners that are closed to the capital accounts at the end of the period. 24. When noncash property is contributed to a partnership, it is recorded in the books of the partnership at its fair 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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