1) Uncertainties such as doubtful accounts

Multiple Choice

a) Are not provisions because they are future events not arising out of past transactions

b) Are provisions because they are future events arising from past transactions

c) Should not be disclosed

d) Are provisions because the amounts are uncertain

e) Are not provisions since they relate to normal business activities

2) A partnership agreement is

Multiple Choice

a) The legal relationship among the partners whereby each partner is an agent of the partnership and is able to bind the partnership to contracts within the apparent scope of the partnership's business

b) The agreement between partners that sets forth the terms under which the affairs of a partnership will be conducted

c) The legal relationship among general partners of a partnership that makes each general partner responsible for paying all the debts of the partnership if the other partners are unable to pay their shares

d) The agreement that protects all the partners of a partnership from unlimited liability for the partnership debts

e) An unincorporated association of two or more persons to carry on a business for profit as co-owners

3) Quinn, Mellissa, and Harper are liquidating their partnership. They have no agreement for sharing profits and losses. The ending capital account balances are Quin, $13,000; Mellissa, $13,000; Harper, ($2,000). There is $60,000 in cash to be distributed to the partners. The journal entry to record the distribution should be

Multiple Choice

• Quinn, Capital	20,000
  Mellissa, Capital	20,000
  Harper, Capital	20,000
  Cash		60,000

• Quinn, Capital	30,000
  Mellissa, Capital	30,000
  Cash		60,000

• Cash	60,000
  Quinn, Capital		60,000

• Cash	12,000
  Harper, Capital	46,000
  Quinn, Capital		2,000
  Mellissa, Capital		60,000

• Quinn, Capital	60,000
  Cash		30,000
  Harper, Capital		30,000