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Partnership Accounting Quiz 1

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2 years ago by
Nimiah Dayao
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25 questions PREVIEW SHOW ANSWERS
 Question 1
 30 seconds
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Q. 
 Statement 1: A partnership is an organization where two or more persons bind themselves
to contribute money, property, or industry into a common fund with the intention of
dividing the profits among themselves.

Statement 2: Regardless if it is oral or in writing, as long as the contract is valid, the

Partnership is also valid.
answer choices

True, True
True. False
False, True
False, False
 Question 2
 30 seconds
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Q. 
Statement 1: A limited partner can contribute either money, property or industry to the
partnership.
Statement 2: Only the name of the general partners can be part of the partnership name.
answer choices

True, True
True, False
False, True
False, False
 Question 3
 20 seconds
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Q. 
Statement 1: Partnership is always taxable like corporation.
Statement 2: Both partnership and corporation has unlimited liability and limited life.
answer choices

True, True
True, False
False, True
False, False
 Question 4
 20 seconds
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Q. 
Statement 1: If the contribution is in the form of immovable property, the contract should
be in writing.
 Statement 2: The partnership should be registered with SEC if the total capital is 3000 or
more, otherwise the partnership will be invalid.
answer choices

True, True
True, False
False, True
False, False
 Question 5
 20 seconds
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Q. 
Statement 1: All Limited Partners are Capitalist Partner but not all capitalist partner are
general partner

Statement 2: All industrial partners are general partners but not all general partners are
capitalist partner
answer choices

True, True
True, False
False, True
False, False
 Question 6
 10 seconds
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Q. 
Statement 1: As a rule, All partners can participate on the management except for
Limited partner and if there is appointed manager.

Statement 2: The name of the partnership should be unique and not misleading.
answer choices

True, True
True, False
False, True
False, False
 Question 7
 10 seconds
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Q. 
The following are the benefits of being registered to SEC, except?
answer choices
Issuance of license to operate
Can evade tax liabilities
Availability of financial statements for the public
none of the above
 Question 8
 5 seconds
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Q. 
A partnership were all partners are general partner
answer choices

General partnership
Limited Partnership
General Limited Partnership
None of the above
 Question 9
 10 seconds
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Q. 
One who can manage the partnership, can contribute money, property and industry, and
has unlimited liability.
answer choices

General Partner
Limited Partner
Capitalist Partner
Industrial Partner
 Question 10
 10 seconds
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Q. 
True or False
A Nominal Partner is a partner in name only but has the same liability as a real partner to
the third parties.
answer choices

True
False
 Question 11
 10 seconds
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Q. 
True or False
 The name of limited partnership should include the word "limited" or "ltd", otherwise it
will be considered as General Partnership.
answer choices

True
False
 Question 12
 10 seconds
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Q. 
The following are features of Partnership except
answer choices

Taxable Entity
Mutual agency
Limited Life
Limited Liability
 Question 13
 10 seconds
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Q. 
A partner that is not active on the management and not known to the public.
answer choices

Ostensible partner
Secret Partner
Silent Partner
Dormant Partner
 Question 14
 10 seconds
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Q. 
True or False
If the life of the Partnership is not stated in the contract, then it is a partnership at will.
answer choices

True
False
 Question 15
 10 seconds
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Q. 
The following are advantages of partnership over corporation, except
answer choices
Ease of formation
Lesser legal Requirements
Greater amount of capital
Non of the above
 Question 16
 10 seconds
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Q. 
The following are advantages of partnership over sole proprietorship, except
answer choices

Greater amount of capital

Better Management
Lesser Legal requirements
None of the above
 Question 17
 5 seconds
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Q. 
True or False
Partnership has limited life while Corporation has unlimited life
answer choices

True
False
 Question 18
 10 seconds
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Q. 
True or False
Shareholder are free from liability while partners, as a rule, are liable up to extent of their
personal assets.
answer choices

True
False
 Question 19
 10 seconds
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Q. 
The following are the rights of a partner, except
answer choices

Right over specific partnership property

Right to share in profits
Right to share in the remaining assets upon partnership liquidation
Right to co-manage
 Question 20
 20 seconds
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Q. 
Statement 1: Partner's Capital account should be debited when there is a permanent and
temporary withdrawals
Statement 2: Partner's Capital account should be credited when there is a share in profit.
answer choices

true, true
true, false
false, true
false, false
 Question 21
 20 seconds
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Q. 
True or False
Partner's Capital account is a real account while Partner's Drawing account is temporary
account which must be closed to capital account every end of the accounting period.
answer choices

True
False
 Question 22
 20 seconds
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Q. 
Statement 1: Partner's Drawing account should be debited when there is a temporary
withdrawals and share in losses
Statement 2: Partner's Drawing account is always debited when closed to Partner's
Capital account
answer choices

true, true
true, false
false, true
false, false
 Question 23
 30 seconds
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Q. 
What will be the journal entry if Abad invested 150,000 cash in the partnership?
 answer choices

Dr- Cash 150,000

Cr- Abad, Capital 150,000
Dr- Abad ,Capital 150,000
Cr- Cash 150,0000
Dr - Cash 150,000
Cr- Abad, Drawing 150,000
Dr- Abad, Drawing 150,000
Cr- Cash 150,000
 Question 24
 20 seconds
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Q. 
What will be the effect if a partner permanently withdrew from the partnership?
answer choices

Partnership will be dissolved

The asset and equity of the partnership will decrease
No effect
None of the above
 Question 25
 30 seconds
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Q. 
Journalize the transaction:

A partnership note payable to the bank in the amount of 5,000 fell due and was paid by
Abad out of his own personal cash.
answer choices

Dr- Notes Payable 5,000

Cr- Cash 5,000
Dr- Notes Payable 5,000
Cr- Abad, Drawing 5,000
Dr- Cash 5,000
Cr- Abad, Capital 5,000
Dr- Notes Payable 5,000
Cr- Abad, Capital 5,000

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