Question 42 Which of the following will not result in the termination and liquidation of a partnership? 1) Partners are incompatible and choose to cease operations. 2) There are excessive losses that are expected to continue. 3) Retirement of a partner. O1 only O 1 and 2 only O2 and 3 only 3 only O 1, 2, and 3

Question 42 Which of the following will not result in the termination and liquidation of a partnership? 1) Partners are incompatible and choose to cease operations. 2) There are excessive losses that are expected to continue. 3) Retirement of a partner. O1 only O 1 and 2 only O2 and 3 only 3 only O 1, 2, and 3

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 3MC: Which of the following is a disadvantage of the partnership form of organization? A. limited life B....

See similar textbooks

Similar questions

PB3. LO 15.5 Match each of the following descriptions with the appropriate term related to partnership accounting. A. Each and every partner can enter into contracts on behalf of the partnership i. liquidation B. The business ceases operations. ii. capital deficiency C. How partners share in income and loss iii. admission of a new partner D. Adding a new partner by contributing cash iv. mutual agency E. A partner account with a debit balance v. income sharing ratio
1. S1: The dissolution of a partnership occurs only when the partnership is terminating operations and going out of business.S2: Bonus paid to a new partner result in a reduction to the capital accounts of the existing partners in proportion to their capital ratio. a. S1 is false, S2 is trueb. Both statements are truec. Both statements are false d. S1 is true, S2 is false
29. Unless otherwise agreed, a partnership dissolves if___ Group of answer choices A. An event occurs that the partners agreed would dissolve the partnership B. A court dissolves the partnership C. The business is illegal D. All of the above
A 5
Q1.)Why do you think an industrial partner does not share in the losses of partnership?Q2.)If you decide to join a partnership, which type of admission would you choose and why?Q3.)How may the capital deficiency of an insolvent partner can be eliminated?
12. Partners may admit a new partner in the partnership for the following reasons, except: A. Need for additional capital B. Need for skills or expertise of the new partner C. Partners want to reduce their interest in the partnership D. All of the above E. Answer not given
2. Which of the following is incorrect on why a particular partner may have a deficit balance during a partnership liquidation? I. The partner with the deficit may have the greatest profit and loss residual ratio II. The partner with the deficit may have made the greatest withdrawals from the partnership III. The partner with the deficit may have the smallest profit and loss residual ratio {A}. I only {B}. II only {C}. III only {D}. I and II only 3. When making a distribution to partners during a partnership liquidation, the partner who should receive the last allocation of the distribution is the one who has which of the following? [A] The largest capital account balance [B] The largest loss absorption power [C] The smallest capital account balance [D] The smallest loss absorption power
A3
TRUE OR FALSE
11. Statement 1. An industrial partner is not exempted from sharing in the loss of the partnership if he is also a capital partner.Statement 2. When a new partner is admitted in the existing partnership, there is no need the consent of all existing partners. Statement- 1 Statement- 2A. True FalseB. False FalseC. False TrueD. True True
A Moving to another question will save this response. Question 1 When a new partner is added to an existing partnership, the underlying business operations must close and reopen. O True False A Moving to another question will save this response.
8