accounting questions

Multiple Choice: Choose only one response for each question. 1. The equity section of the balance sheet for a partnership must show the A. liabilities. B. assets. C. capital of each partner. D. expenses. 2. Unless otherwise stated, partners share profits and losses A. according to their capital balances. B. according to the amount of time spent at the firm by each partner. C. based on the amount of business each partner generates. D. equally. 3. Which of the following is a disadvantage of the partnership form of organization? A. Ease of formation B. Greater management expertise than a sole proprietorship C. Mutual agency rule D. Less regulation and taxation than a corporation 4. Which of the following is a disadvantage of a corporation? A. Limited liability B. Ease of raising capital C. Continuous life D. Double taxation 5. Which of the following accounts would not be found in the equity section of a corporation's balance sheet? A. Common Stock B. Donated Capital C. Preferred Stock D. Dividends Payable