Partnership accounting does not: Multiple Choice Use a capital account for each partner. Use a withdrawals account for each partner. Allocate net income to each partner according to the partnership agreement. Allocate net loss to each partner according to the partnership agreement. Tax the business entity.

Partnership accounting does not: Multiple Choice Use a capital account for each partner. Use a withdrawals account for each partner. Allocate net income to each partner according to the partnership agreement. Allocate net loss to each partner according to the partnership agreement. Tax the business entity.

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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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 statements is true? Partners are employees of the partnership. Salaries to partners are expenses on the income statement. Salary allowances should reflect the relative value of services provided by partners. Salary allowances are expenses. Interest allowances are expenses.
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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 is an expense of a LLP? إختر أحد الخيارات: a. Interest on loans from partners to the partnership. b. Interest on partners’ capital account balances. c. Interest on loans to partners from the partnership. d. interest on notes receivable
For a partnership, which of the following account is not a current asset? Group of answer choices Cash Merchandise Inventory Accounts Receivable Accounts Payable
How do the asset and liability sections of the balance sheet differ for a partnership versus other forms of businesses (corporation, sole proprietorship)? Question 1 options: The equity section reports a separate capital account for each partner. The assets and liability sections do not differ between partnerships and other forms of business. The assets and liabilities are assigned to the individual partners. The assets tend to be higher and the liabilities tend to be lower for a partnership.
According to this Chapter on Partnerships, are the following statements True or False: Question 1: A partnership allows owners to pool their talents and resources. A. True B. False Question 2: In a partnership, the income is taxed at the partnership level as well as at the personal level of the owners. A. True B. False Question 3: Mutual agency means that any partner can legally bind the other partners and the partnership to business contracts within the scope of the business's regular operations. A. True B. False
Which of the following is a correct definition of a concept related to partnership taxation? A partner's capital-sharing ratio is defined as the percentage of partnership assets (capital) that would be allocated to the partner upon liquidation of the partnership. A special allocation is defined as an amount that could differently affect the tax liabilities of two or more partners. The partnership's outside basis is defined as the sum of each partner's capital account balance. The aggregate concept treats partners and partnerships as separate units and gives the partnership its own tax personality.
When a new partner is admitted into the partnership by investment, the following take place except O Total assets and total partners' equity will decrease, unlike admission by purchase of interest. O Investment of non-cash assets must be recorded at current or fair market value. O. It is a transaction between the partnership and the incoming partner O. It involves the investment of assets by new partner into the partnership
Any assets invested by a particular partner in a partnership ________.A. do not become a partnership asset but instead remain with the partnerB. can be used only by the investing partnerC. become the property of all the partnersD. are the basis for all profit sharing
Which of the following accounts could be found in the general ledger of a partnership? Income tax expense interest expense on partner loans A NO NO B YES NO C YSE YES D NO YES Select one: a. NO , NO b. YES , NO c. NO . YES d. YES , YES