Question : Multiple Choice Questions 49.Which of the following statements not correct? A. Each general : 1169066

 

Multiple Choice Questions 

49.Which of the following statements is not correct?   

A. Each general partner has unlimited liability for the debts of a partnership.

 

B. Federal income tax is levied on the net income of a partnership and on the earnings of the individual partners when the net income is distributed to them.

 

C. Any general partner can make valid contracts for a partnership and can otherwise conduct its affairs.

 

D. When a partner dies or is incapacitated, the partnership is dissolved.

 

 

 

 

50.Federal income tax is levied on   

A. a partnership based on its total net income when earned.

 

B. the partners for their individual shares of the reported partnership income.

 

C. the partners only when they withdraw earnings from the partnership for personal use.

 

D. the partnership at the end of the fiscal period.

 

 

 

 

51.Which of the following is not a characteristic of a partnership?   

A. Each general partner has unlimited liability for the debts of the partnership.

 

B. If one partner dies or leaves the partnership, the existing partnership is terminated.

 

C. The partnership income is subject to a federal income tax that is levied on the business but not on the partners.

 

D. The existing partnership agreement is dissolved and a new agreement is formed when a new partner joins the partnership.

 

 

 

 

52.Smith contributed $15,000 cash while J. West contributed $20,000 cash and office equipment costing $14,000 currently valued at $12,000 to a new partnership. The journal entry to record the partnership investments of Smith and West is   

A. 

 

 

B. 

 

 

C. 

 

 

D. 

 

 

 

 

 

53.On November 1, Jackson and Kiln formed a partnership with Jackson contributing land valued at $100,000 and a building valued at $125,000. Kiln contributed $55,000 in cash. The partnership assumed the mortgage on Jackson’s property of $85,000. Profits and losses are to be shared equally. What are the balances of the partner’s capital accounts after recording these transactions?   

A. Jackson: $97,500 and Kiln:$97,500

 

B. Jackson: $55,000 and Kiln: $140,000

 

C. Jackson: $140,000 and Kiln: $55,000

 

D. Jackson: $225,000 and Kiln: $55,000

 

 

 

54.The amount that each partner withdraws from a partnership   

A. cannot exceed the net income reported by the partnership.

 

B. should be specified in the partnership agreement.

 

C. is the base on which federal income taxes are levied on the partnership income.

 

D. is usually determined by the amount of the net income.

 

 

 

 

55.Which of the following statements is correct?   

A. The general ledger of a partnership will include a single capital account, whose balance represents the combined equity of all the partners.

 

B. Past-due accounts receivable should not be transferred from the financial records of a sole proprietorship to a newly formed partnership.

 

C. The financial records of a new partnership are opened with a memorandum entry in the general journal.

 

D. A new partner must purchase the partnership interest of another partner.

 

 

 

 

56.The entry to record the investment of cash in a partnership by one partner would consist of a debit to   

A. the partner’s capital account and a credit to Cash.

 

B. Cash and a credit to an account called Partners’ Equities.

 

C. Cash and a credit to the partner’s capital account.

 

D. Cash and a credit to the partner’s drawing account.

 

 

 

 

57.Ryan Fuller, a sole proprietor, entered into partnership with another individual. Fuller’s investment in the partnership included equipment that cost $32,000 when it was purchased. The equipment has a book value of $13,000 and a net agreed-on value of $16,000. In the financial records of the partnership, this equipment and its accumulated depreciation should be recorded at   

A. $16,000 and $0, respectively.

 

B. $13,000 and $0, respectively.

 

C. $32,000 and $19,000, respectively.

 

D. $16,000 and $3,000, respectively.

 

 

 

 

58.When a partner submits personal living expenses for company reimbursement and the expense is reflected as a reduction of period profits, the company has violated the   

A. Conservatism principle.

 

B. Going concern assumption.

 

C. Separate entity assumption.

 

D. Full disclosure principle.

 

 

 

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more