PARTNERSHIP AND CORPORATION ACCOUNTING

Name: TIAMZON, GENEROSO JR.G Score:

Course: BSBA III Date:

True or False

T 1. Unlimited liability holds a sole proprietor personally responsible for all the

debts of the business.

F 2. In a limited partnership, a limited partner’s name must be included in the

partnership’s name.

F 3. Every partnership must have at least one limited partner.

F 4. A partner who invests assets into a partnership retains control over those

specific assets.

T 5. A partnership involves mutual agency, unlimited liability for general

partners and limited life.

T 6. A partner’s capital account is debited to reflect assets permanently

withdrawn.

F 7 A partnership with capital of less than ₱3,000 is void if it is unregistered

with the Securities and Exchange Commission.

T 8. A partnership cannot be established for religious purposes.

T 9. A partnership has a juridical personality separate and distinct from that of

each of the partners.

T 10. When the partnership capital is ₱3,000 or more, the public instrument

must be recorded with the Securities and Exchange Commission.

F 11. Under the partnership form of business, large amounts of capital can be

raised easily.

T 12. All partnerships have limited life and assets are co-owned by the

partners.

T 13. A dormant partner is one who does not take active part in the partnership

business and is not known as a partner.

T 14. A partnership is a legal entity separate and apart from its owners.

F 15. In a limited partnership, the general partner’s liability is limited to his

investment.

F 16. A partner usually retains title to assets contributed to a partnership, so

that certain assets maybe identified as belonging to a given partner.

F 17. In a limited partnership, none of the partners has unlimited liability for the

business debts.

T 18. There can never be a partnership without contribution of money, property

or industry to a common fund.

T 19. The essence of partnership is that each partner must share in the profits

or losses of the venture.

F 20. A partnership should always be constituted in writing.

T 21.

One of the partners in a proposed partnership is a multi-millionaire. The

stipulation in the articles of partnership that this partner shall be excluded

from sharing in the profits of the partnership is void

F 22.

When the partners invest assets other than cash in a partnership, their

capital accounts should be credited with the current fair market values of

the assets.

T 23. Each partner is personally liable for all debts of the partnership.

T 24. All partners in a general partnership are personally liable for all debts

incurred by the partnership.

T 25. As long as the action within the scope of the partnership, any partner can

bind the partnership.

F 26. One of the partners in a proposed partnership is a multi-millionaire. The

stipulation in the articles of partnership that this partner shall be excluded