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Match the Items Below

Question 210

Matching

Match the items below

Premises:
Each partner is personally and individually liable for partnership debts.
Made on basis of partners' capital balances.
Explains changes in individual partner's capital accounts during a period.
Each partner can bind the partnership so long as the action appears to be appropriate for the partnership.
Business terminates.
Results in an increase in total net assets and total capital of the partnership.
Capital account with a debit balance.
The basis for sharing income and losses.
Total net assets and total capital of the partnership do not change.
Written contract establishing duties and responsibilities of partners.
Responses:
Mutual agency
Unlimited liability
Partnership agreement
Income ratio
Partners' capital statement
Admission by investment
Purchase of an interest
Partnership liquidation
Capital deficiency
Distribution of cash to partners in liquidation of a partnership.

Correct Answer:

Each partner is personally and individually liable for partnership debts.
Made on basis of partners' capital balances.
Explains changes in individual partner's capital accounts during a period.
Each partner can bind the partnership so long as the action appears to be appropriate for the partnership.
Business terminates.
Results in an increase in total net assets and total capital of the partnership.
Capital account with a debit balance.
The basis for sharing income and losses.
Total net assets and total capital of the partnership do not change.
Written contract establishing duties and responsibilities of partners.
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