VERSION: B
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Q Multiple Choice Questions:
How are withdrawals by partners treated in the partnership accounting records?
a As an expense
b As a reduction in the partner's capital account
c As additional capital
d As income
Which of the following is a contingent liability?
a Accounts Payable
b Accrued Expenses
c Warranty Liability
d Prepaid Expenses
How are shortterm notes payable different from accounts payable?
a Shortterm notes payable are interestfree.
b Accounts payable are usually paid in installments.
c Shortterm notes payable involve written agreements.
d Accounts payable have a longer maturity period.
In a limited partnership, who is typically responsible for the management of the business?
a General partners
b Limited partners
c Both general and limited partners
d Corporate partners
How are partnership profits and losses allocated in the absence of a specific agreement?
a Equally among partners
b Based on the partnership's years in operation
c Proportionate to each partner's capital balance
d According to the partner who invested the most capital
