1. Select the statement about partnerships that is correct.

• A : If equipment that was contributed by a partner is later sold, losses are borne by that partner but gains are shared by all partners.

• B : if a partnership is dissolved, an asset does not legally return to the partner that contributed it.

• C : If a partner contributed an asset to the partnership, when the asset is sold, any gain would go to that partner.

• D : Partnership assets are individually owned by the partners that contributed them.

2. All of the following statements about limited partnerships are TRUE except

• A : limited partners generally do not take part in the day-to-day operations of the business.

• B : creditors can try to collect from general partners' personal assets.

• C : general partners usually just invest cash or other assets.

• D : there must always be at least one general partner.

3. In a given year, changes in capital that appear on the statement of partners' equity may result from

• A : gains, profit, investment.

• B : investment, profit, drawings.

• C : drawings, losses, gains.

• D : investment, gains, losses.

4. Concerning admission of a partner, all of the following statements are TRUE except

• A : accounting records from the old partnership can no longer be used.

• B : a new partnership is formed when a new partner is added.

• C : a new capital account is created for the new partner.

• D : admitting a new partner legally dissolves the existing partnership.

Please Answer all of these