Question: 1. How does partnership accounting differ from corporate accounting? a. Partnerships report all assets at fair value as of the latest balance sheet date. b.

1. How does partnership accounting differ from corporate accounting? a. Partnerships report all assets at fair value as of the latest balance sheet date. b. Individual capital accounts replace the contributed capital and retained earnings balances found in corporate accounting. c. The matching principle is not considered appropriate for partnership accounting. d. Revenues are recognized at a different time by a partnership than is appropriate for a corporation. 2. Which of the following best describes the articles of partnership agreement? a, The purpose of the partnership and partners' rights and responsibilities are required elements of the articles of partnership. b. The articles of partnership are a legal covenant and must be expressed in writing to be valid. c. The articles of partnership are an agreement that limits partners' liability to partnership assets. d. The articles of partnership are a legal covenant that may be expressed orally or in writing, and form the central governance for a partnership's operations. 3. Apartnership has the following capital balances with partners' profit and loss percentages indicated parenthetically: Burks (50%) $180,000 Donovan(25%) 280,000 Watkins (25%) 380,000 Ranzilla agrees to pay a total of $278,000 directly to these three partners to acquire a 25 percent ownership interest from each. The partnership will record goodwill based on the new partner's payment. What is Donovan's capital balance after the transaction? (Please Show Your Work) 4, Following are the capital account balances and profit and loss percentages (indicated parenthetically) for the William, Jennings. and Bryan partnership: William (40%) $ 170,000 Jennings (40%) 120,000 Bryan (20%) 100,000 Darrow invests $250,000 in cash for a 30 percent ownership interest. The money goes to the business. No goodwill or other revaluation is to be recorded. After the transaction, what is Jennings's capital balance? (Please Show Your Work) 5. Which of the following type of organization is classified as a partnership, or similar to a partnership, for tax purposes? (1.) Limited Liability Company (Il.) Limited Liability Partnership (Ill.) Subchapter S Corporation a. I, II, and Ill. b. II and III. c. I and II. d. Il only. e. I and

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