Q1 * This is the framework within which the partners are to operate or conduct partnership business. a. Partnership agreement b. Partnership virtue C. PFRS d. Mutual Agency A O B O C O D Q2 * The following are true regarding the characteristics of a general partnership except, a. Separate legal entity b. Ease of formation c. Unlimited liability d. Unlimited life A O B O C O DQ3 * If the partnership assumes a liability of a partner, in recording in the new partnership books, it involves a a. Credit to the asset b. Credit to the capital account of that partner c. Debit to drawing account of that partner d. Debit capital account of that partner O A O B O C O D Q4 * If a certain asset is contributed to the partnership, and in the absence of the agreed value, when recording that certain asset in the partnership books, it is valued at a. Fair market value b. Assessed value c. Original cost d. Promised value O A B O O D