The statement of financial position of a partnership will
Show a separate amount of equity for each partner
Show a separate drawing account for each partner
Show the amount of profit that was distributed to each of the partner
All of the above
The maximum number of members in non-banking firm is
10
12
15
20
Which of these is not an advantage of the partnership form of business?
Mutual Agency
Ease of formation
Pooling of resources
Minimum government regulations
A partner who does not take part in the working of the firm is called
Sleeping partner
Nominal partner
Active partner
Partner by Estoppel
The partnership form of business is
Restricted to law and medical practices.
Restricted to firms having fewer than 10 partners.
Not restricted to any particular type of business.
Most often used by relatively large organisations
The basis of partnership is
Utmost good faith
Money available for investment
Desire to work together
All of these
The partner is a limited partnership that has unlimited liability is referred to as the
Limited partner
Special partner
General partner
In the liquidation of a partnership, any gain or loss on the realisation of non cash assets should be allocated
First to creditors and remainder to partners
To the partners on the basis of their capital balances
To the partners on the basis of their profit/loss sharing ratios
Only after all creditors have been paid
The partnership agreement would normally include each of the following except the
Date of the partnership commencement
Principal location of the firm
Surviving family members in the event of a partner's death
All of these should be included
An entry is not required in the liquidation of a partnership to record the
Payment of cash to creditors
Distribution of cash to the partners
Sale of non cash assets.
Allocation of a capital deficiency to partners with credit balances when the deficient partner is expected to pay the deficiency.
