Question 1

Partner net income divided by average partner equity equals __________ .

Accepted Answer

The answer of Partner net income divided by average partner...

Question 2

A relatively new form of business organization that protects partners with limited liability, allows limited partners to assume an active management role, and is taxed as a partnership is a  __________.

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Question 3

During the closing process, each partner's withdrawals account is closed to ________.

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Question 4

At least one partner having a debit balance in his/her capital account at the point of the final distribution of cash is known as a ________.

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Question 5

If partners agree on how to share income, but say nothing about losses, then losses are shared
________.

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Question 6

A partner can be admitted into a partnership by ________ or by ________.

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Question 7

When a partner invests in a partnership, his/her capital account is ________ for the invested amount.

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Question 8

During the closing process, partner's capital accounts are ________ for their share of net income and ________ for their share of net loss.

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Question 9

A partnership designed to protect innocent partners from malpractice or negligence claims resulting from the acts of other partners is a __________ partnership.

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Question 10

Partners in a partnership are not taxed on their withdrawals , but rather on ________.

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Question 11

If a partner withdraws from a partnership and the recorded value of his or her equity is overstated, then a bonus goes to ; if the recorded value of the withdrawing partner's equity is understated, then a bonus goes to ________.

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Question 12

Match between columns
                        Premises:  A financial statement that shows total capital balances at the beginning of the period, any additional investment by partners, the income or loss of the period, the partners' withdrawals, and the ending capital balances.
 A partnership that has two classes of partners, limited partners and general partners. Limited partners have no personal liability beyond the amount they invest in the partnership, and have no active role except as specified in the partnership agreement.
 A partnership that protects innocent partners from malpractice or negligence claims resulting from the acts of another partner.
 The legal relationship among general partners that makes each of them personally responsible for paying the debts of the partnership if the partnership cannot pay.
 The agreement between partners that sets terms under which the affairs of the partnership are conducted.
 An unincorporated association of two or more persons to pursue a business for profit as co-owners.
 A partner who assumes unlimited liability for the debts of the partnership.
 The legal relationship among partners whereby each partner can commit or bind the partnership to any contract within the scope of the partnership's business.
 A corporation that does not qualify for nor elect to be treated as a partnership for income tax purposes and therefore is subject to income taxes.
 A corporation with 100 or fewer stockholders that can elect to be treated as a partnership for income tax purposes but retain the same limited liability as other corporations.

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Quiz 12: Accounting for Partnerships

Partner net income divided by average partner equity equals __________ .

A relatively new form of business organization that protects partners with limited liability, allows limited partners to assume an active management role, and is taxed as a partnership is a __________.

During the closing process, each partner's withdrawals account is closed to ________.

At least one partner having a debit balance in his/her capital account at the point of the final distribution of cash is known as a ________.

If partners agree on how to share income, but say nothing about losses, then losses are shared ________.

A partner can be admitted into a partnership by or by .

When a partner invests in a partnership, his/her capital account is ________ for the invested amount.

During the closing process, partner's capital accounts are for their share of net income and for their share of net loss.

A partnership designed to protect innocent partners from malpractice or negligence claims resulting from the acts of other partners is a __________ partnership.

Partners in a partnership are not taxed on their withdrawals , but rather on ________.

If a partner withdraws from a partnership and the recorded value of his or her equity is overstated, then a bonus goes to ; if the recorded value of the withdrawing partner's equity is understated, then a bonus goes to ________.

Match the following definitions with the appropriate term