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onding correct answer. permanent in character. This requires a- Personal withdrawal by a partner in anticipation for profits are not viewed as 1) a) debit to drawing account

onding correct answer. permanent in character. This requires a- Personal withdrawal by a partner in anticipation for profits are not viewed as 1) a) debit to drawing account

FINANCIAL ACCOUNTING
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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Partnership Operations Personal withdrawal by a partner in anticipation for profits are not viewed as permanent in character. This requires a- Instruction: Encircle the letter of the corresponding correct answer. Multiple Choice: 11 a) debit to drawing account b) credit to capital account c) debit to capital account d) credit to drawing account 1 In preparing closing entries of the partnership,- a) all nominal accounts are reduced to zero balance b) Income & Expense Summary is closed to Capital Account c) Income & Expense Summary is closed to Drawing Account d) Drawing Account is left open 3) Failure to stipulate on how profit and loss be divided among partners. It should be- a) in proportion to what has been contributed b) settled in the court of law c) equally divided d) by other legal means agreeable among partners 4) In case the partnership makes profit, how will an industrial partner be given a share? a) what is just equitable b) equally c) arbitrarily d) depending on the court's decision 5) A partner who contributes money or property as well as his work or industry to the partnership is a/an- a) industrial partner b) capitalist-industrial partner c) capitalist partner d) dormant partner
Transcribed Image Text:Partnership Operations Personal withdrawal by a partner in anticipation for profits are not viewed as permanent in character. This requires a- Instruction: Encircle the letter of the corresponding correct answer. Multiple Choice: 11 a) debit to drawing account b) credit to capital account c) debit to capital account d) credit to drawing account 1 In preparing closing entries of the partnership,- a) all nominal accounts are reduced to zero balance b) Income & Expense Summary is closed to Capital Account c) Income & Expense Summary is closed to Drawing Account d) Drawing Account is left open 3) Failure to stipulate on how profit and loss be divided among partners. It should be- a) in proportion to what has been contributed b) settled in the court of law c) equally divided d) by other legal means agreeable among partners 4) In case the partnership makes profit, how will an industrial partner be given a share? a) what is just equitable b) equally c) arbitrarily d) depending on the court's decision 5) A partner who contributes money or property as well as his work or industry to the partnership is a/an- a) industrial partner b) capitalist-industrial partner c) capitalist partner d) dormant partner
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