Answered: If the personal assets of the partners…

If the personal assets of the partners are exposed to the business debts, it is called? O a. Mutual Agency O b. Limited life O c. Unlimited Liability O d. Co-ownership of property

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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Question

If the personal assets of the
partners are exposed to the
business debts, it is called?
O a. Mutual Agency
O b. Limited life
O c. Unlimited Liability
o d. Co-ownership of
property

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In accounting for the lump-sum liquidation of a partnership, cash payments to partners after all non-partner creditors' claims have been satisfied, but before the final cash distribution should be according toa. the final balances in partner capital accounts.b. the partners' relative share of the gain or loss on liquidation.c. the partners' relative profit and loss sharing ratio.d. safe payment computations.
A-3
Which one of the following will be added to the current liabilities in the balance sheet? a. Commission paid to partners b. Outstanding Commission expense c. Commission income received in advance d. Commission expense paid in advance
Which one of the following statement is not correct on preparation of partnership final accounts? a. Adjustments will be recorded have dual effects in the income statement and statement of financial position b. Preparation of income statement is same as sole proprietorship business c. Net profit from income statement will be transferred to partners' capital account d. Accounting principles are same as sole proprietorship business
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Accounting In the liquidation of a partnership, a loan from a partner a. Will be paid off at the same time as payment of other liabilities of the partnership b. Will be paid off before distribution of cash to partners for their capital investments c. Will be closed to the partner's drawing account d. Will be written off
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Generally speaking, what events or activities would normally result in a partner’s capital account being debited?