Direction: Write TRUE if the statement is true and FALSE if the statement is false. _1. A written partnership contract is required to be prepared whenever a partnership is formed. _2. All partnerships are subject to income tax. _3. A partner's contribution in the form of industry or service is recorded by debiting the account "Industry". _4. In the partnership books, there are as many capital and drawing accounts as there are partners. _5.A partners contribution in the form of noncash assets should be recorded at its fair market value in the absence of an agreed value. 6A partnershin is much egsier and less expensive to orggnize than corporation

Direction: Write TRUE if the statement is true and FALSE if the statement is false. _1. A written partnership contract is required to be prepared whenever a partnership is formed. _2. All partnerships are subject to income tax. _3. A partner's contribution in the form of industry or service is recorded by debiting the account "Industry". _4. In the partnership books, there are as many capital and drawing accounts as there are partners. _5.A partners contribution in the form of noncash assets should be recorded at its fair market value in the absence of an agreed value. 6A partnershin is much egsier and less expensive to orggnize than corporation

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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Write the word or group of words that identify each of the following statements. 1 A partnership organized for the purpose of rendering service. 2. A contract whereby two or more persons bind themselves to contribute money, property, or industry to a common fund with the intention of dividing profits among themselves. 3. The basis for recording a partner's contribution in the form of noncash assets 4. One who is both a silent and a scret partner.
The partner's drawing account is used: O To reduce the partner's capital account balances at the end of an accounting period O To record the partner's share of net income or loss for an accounting period O In the same manner as the partner's loan accounts O To record the partner's salaries.
loan to partner , the debit side will be in the partnership Select one: a. cash b. No entry c. partner loan d. partner capital
TRUE OR FALSE PLEASE ANSWER ALL.
QUESTION NO. 1: Having the clear understanding of company’s accounts and partnership accounts you are required to answer the following questions. What is partnership accounts give example and what are the necessary components of partnership accounts that a company should consider when preparing partnership accounts and why? How can you differentiate the company’s accounts from partnership accounts and on what grounds?explain with the help of example. (important instructions: content should be original with 0% plagirisim, answer should be in details with proper explanation and examples)
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
When a partnership is created, what is the contract called that gives the amounts invested by each partnership, how income and losses should be distributed, etc.? Group of answer choices partnership charter partnership partnership agreement none of these
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1) A partner may be admitted into a partnership by I. Investing assets in the partnership II. purchasing a partner's interest III. contributing his/her services I, II or III I only II only I and III 2) X retired from the partnership of X, Y and Z. X received an amount in excess of his capital balance in settlement of his equity. All assets of the partnership are fairly valued. Under these circumstances, a. the partnership shall recognize goodwill b. the partnership shall recognize an expense c. the capital balances of Y and Z would decrease d. the capital balances of Y and Z would not be affected 3) A partner may withdraw or retire from the partnership by a. selling his interest to an outsider b.payment of his interest from partnership funds c. selling his interest to one or more of the…
According to the provisions within the Uniform Partnership Act, in which of the following instances would a general partnership be treated as a separate legal entity from its partners a. partner's limited liability to partnership assets b. partners to be treated as employees of the partnership Oc. Partnership payment of income taxes on partnership income. Cd. Partnership acquiring title and ownership of property
S1: When two or more proprietors form a partnership, one may maintain his own books as the partnership books. Accordingly, only the other partners need to adjust and close their accounts. S2: When one of the partners retain his books as the books of the partnership, still, he should also close his accounts and record his investments both statements are true both are false only S1 is true only S2 is true.