Question 1

Dissolution of a partnership can occur under the limited life characteristic if a partner:

Accepted Answer

A) dies. 
B) becomes incapacitated. 
C) goes bankrupt. 
D) All of the above are correct. 
A) dies. 
B) becomes incapacitated. 
C) goes bankrupt. 
D) All of the above are correct.

Question 2

Which of the following is NOT generally written into the articles of partnership agreement?

Accepted Answer

A) How new partners are admitted 
B) How accounting records will be maintained 
C) The marital status of each partner 
D) All are written into the agreement. 
A) How new partners are admitted 
B) How accounting records will be maintained 
C) The marital status of each partner 
D) All are written into the agreement.

Question 3

The business bought store equipment on account.
Debit ________ Credit ________

Accepted Answer

The answer of The business bought store equipment on account.
Debit...

Question 4

The journal entry to close a net income to the partners is to:

Accepted Answer

A) debit Income Summary;credit the capital accounts. 
B) credit Income Summary;debit the capital accounts. 
C) credit Net Loss;debit the capital accounts. 
D) debit Net Loss;credit the capital accounts. 
A) debit Income Summary;credit the capital accounts. 
B) credit Income Summary;debit the capital accounts. 
C) credit Net Loss;debit the capital accounts. 
D) debit Net Loss;credit the capital accounts.

Question 5

The accounting procedures are the same for sole proprietorships as for partnerships with the exception of:

Accepted Answer

A) the asset section includes more than one cash account. 
B) the liability section. 
C) the revenue section. 
D) the capital section is now divided per the number of partners. 
A) the asset section includes more than one cash account. 
B) the liability section. 
C) the revenue section. 
D) the capital section is now divided per the number of partners.

Question 6

The different partners are taxed on:

Accepted Answer

A) the gross revenue of the partnership. 
B) the amount they withdraw from the partnership. 
C) the total amount of the net profit of the partnership. 
D) the partners' share of the net profit of the partnership. 
A) the gross revenue of the partnership. 
B) the amount they withdraw from the partnership. 
C) the total amount of the net profit of the partnership. 
D) the partners' share of the net profit of the partnership.

Question 7

Which of the following is an incorrect step in the process of partnership liquidation?

Accepted Answer

A) Pay any liabilities 
B) Sell the assets 
C) Allocate gains and losses to partners 
D) None of the above 
A) Pay any liabilities 
B) Sell the assets 
C) Allocate gains and losses to partners 
D) None of the above

Question 8

The last step in a partnership liquidation is sell the assets for cash.

Accepted Answer

A) True 
 B)False

Question 9

What is the closing entry to allocate net income $30,000 to Eric,Von,and Derek? Their respective capital balances are $20,000,$40,000,and $60,000.Net income is shared in a ratio of their capital balances.

Accepted Answer

A) Debit Income Summary $30,000;credit Eric,Capital $5,000;credit Von,Capital 10,000;credit Derek,Capital $15,000 
B) Debit Income Summary $30,000;credit Eric,Capital $10,000;credit Von,Capital $10,000;credit Derek,Capital $10,000 
C) Debit Salary Expense $30,000;credit Salaries Payable $30,000 
D) Net income cannot be allocated. 
A) Debit Income Summary $30,000;credit Eric,Capital $5,000;credit Von,Capital 10,000;credit Derek,Capital $15,000 
B) Debit Income Summary $30,000;credit Eric,Capital $10,000;credit Von,Capital $10,000;credit Derek,Capital $10,000 
C) Debit Salary Expense $30,000;credit Salaries Payable $30,000 
D) Net income cannot be allocated.

Question 10

When a partner withdraws from a partnership,the company can:

Accepted Answer

A) audit the accounting records and adjust assets to fair market value. 
B) credit the account of the partner that withdrew and debit Cash. 
C) share any loss or profit from the historical value of assets. 
D) None of the above answers is correct. 
A) audit the accounting records and adjust assets to fair market value. 
B) credit the account of the partner that withdrew and debit Cash. 
C) share any loss or profit from the historical value of assets. 
D) None of the above answers is correct.

Question 11

A cash withdrawal of a partner was recorded the same as paying payroll.This error would cause:

Accepted Answer

A) the period's net income to be understated. 
B) the period's net income to be overstated. 
C) the period end assets to be overstated. 
D) the period end assets to be understated. 
A) the period's net income to be understated. 
B) the period's net income to be overstated. 
C) the period end assets to be overstated. 
D) the period end assets to be understated.

Question 12

Applying the ratio based on investment method,compute Taylor and Timmy's share of net income if Taylor invested $400,000 and Timmy invested $600,000.Net income was $75,000.

Accepted Answer

A) Taylor,$15,000;Timmy,$60,000 
B) Taylor,$37,500;Timmy,$37,500 
C) Taylor,$30,000;Timmy,$45,000 
D) None of these answers is correct. 
A) Taylor,$15,000;Timmy,$60,000 
B) Taylor,$37,500;Timmy,$37,500 
C) Taylor,$30,000;Timmy,$45,000 
D) None of these answers is correct.

Question 13

Nathan invests $2,000 for 10% interest in a partnership that has total capital of $17,000 after admitting Nathan.Which of the following is true?

Accepted Answer

A) Nathan's capital is $1,700. 
B) The original partners received a bonus of $200. 
C) Nathan received a bonus of $300. 
D) The original partners' capital in the business was $19,000 before admitting Nathan. 
A) Nathan's capital is $1,700. 
B) The original partners received a bonus of $200. 
C) Nathan received a bonus of $300. 
D) The original partners' capital in the business was $19,000 before admitting Nathan.

Question 14

After several years of business,Abel,Barney,and Cole are liquidating.The following are post-closing account balances.
 $$\begin{array} { l r r } 
\text { Cash } & 18,000 & \
\text { Inventory } & 73,000 & \
\text { Other assets } & 157,000 & 61,000 \
\text { Accounts Payable } & & 50,000 \
\text { Abel, Capital } & & 50,000 \
\text { Barney, Capital } & & 87,000
\end{array}$$ 
Non-cash assets are sold for $275,000.Profits and losses are shared equally.
Record the payment of the liabilities.

Accepted Answer

The answer of After several years of business,Abel,Barney,and Cole are...

Question 15

The statement of partners' equity reveals each partner's ownership percentage of the firm's capital.

Accepted Answer

A) True 
 B)False

Question 16

When a partnership is dissolved:

Accepted Answer

A) it is implied that the business cannot form a different ownership structure. 
B) it is implied that the business cannot continue with a new group of partners. 
C) it is implied that it must be dissolved with any change in partnership structure. 
D) it is implied that the business will halt operations. 
A) it is implied that the business cannot form a different ownership structure. 
B) it is implied that the business cannot continue with a new group of partners. 
C) it is implied that it must be dissolved with any change in partnership structure. 
D) it is implied that the business will halt operations.

Question 17

Closed the income summary,there is a net loss.
Debit ________ & ________ Credit ________

Accepted Answer

Debit 10 &

Question 18

When a partnership is worth more than the amounts recorded,an incoming partner may:

Accepted Answer

A) be required to pay a bonus to the other partners. 
B) pay a smaller amount as an initial investment. 
C) have to pay the same as other partners. 
D) None of these answers is correct. 
A) be required to pay a bonus to the other partners. 
B) pay a smaller amount as an initial investment. 
C) have to pay the same as other partners. 
D) None of these answers is correct.

Question 19

Mary sold Jill her equity in the Mary and Jill partnership for $23,000.If both Mary and Jill had a $15,000 capital balance,the entry to record this transaction would be to:

Accepted Answer

A) debit Cash $23,000;credit Jill,Capital $23,000. 
B) debit Mary,Capital $15,000;credit Jill,Capital $15,000. 
C) debit Cash $15,000;credit Mary,Capital $15,000. 
D) debit Jill,Capital $15,000;credit Mary,Capital $15,000. 
A) debit Cash $23,000;credit Jill,Capital $23,000. 
B) debit Mary,Capital $15,000;credit Jill,Capital $15,000. 
C) debit Cash $15,000;credit Mary,Capital $15,000. 
D) debit Jill,Capital $15,000;credit Mary,Capital $15,000.

Question 20

When a partner withdraws,the partnership may have an audit to adjust the assets to their:

Accepted Answer

A) historic cost. 
B) depreciated value. 
C) fair market value. 
D) book value. 
A) historic cost. 
B) depreciated value. 
C) fair market value. 
D) book value.

Exam 17: Partnership

Dissolution of a partnership can occur under the limited life characteristic if a partner:

Which of the following is NOT generally written into the articles of partnership agreement?

The business bought store equipment on account. Debit ________ Credit ________

The journal entry to close a net income to the partners is to:

The accounting procedures are the same for sole proprietorships as for partnerships with the exception of:

The different partners are taxed on:

Which of the following is an incorrect step in the process of partnership liquidation?

The last step in a partnership liquidation is sell the assets for cash.

What is the closing entry to allocate net income $30,000 to Eric,Von,and Derek? Their respective capital balances are $20,000,$40,000,and $60,000.Net income is shared in a ratio of their capital balances.

When a partner withdraws from a partnership,the company can:

A cash withdrawal of a partner was recorded the same as paying payroll.This error would cause:

Applying the ratio based on investment method,compute Taylor and Timmy's share of net income if Taylor invested $400,000 and Timmy invested $600,000.Net income was $75,000.

Nathan invests $2,000 for 10% interest in a partnership that has total capital of $17,000 after admitting Nathan.Which of the following is true?

The statement of partners' equity reveals each partner's ownership percentage of the firm's capital.

When a partnership is dissolved:

Closed the income summary,there is a net loss. Debit ________ & ________ Credit ________

When a partnership is worth more than the amounts recorded,an incoming partner may:

Mary sold Jill her equity in the Mary and Jill partnership for $23,000.If both Mary and Jill had a $15,000 capital balance,the entry to record this transaction would be to:

When a partner withdraws,the partnership may have an audit to adjust the assets to their:

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Paying,recording,and Reporting Payroll and Payroll Taxes:

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property,plant,equipment,and Intangible Assets

Corporations: Organizations and Stock

Corporations: Stock Values,dividends,treasury Stocks,

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

Filters

The business bought store equipment on account. Debit Credit

Closed the income summary,there is a net loss. Debit & Credit