Question 1.1. Because ________ exists in a partnership, each partner can bind another partner and the business in a contract. (Points : 20)

a partnership agreement mutual agency unlimited liability co-ownership of property

Question 2.2. When a loss on the sale of assets occurs in a liquidation, each of the partners capital accounts is ________. (Points : 20)

debited for the amount of the loss according to the partners profit-and-loss sharing ratio credited for the amount of the loss according to the partners profit-and-loss sharing ratio debited for the amount of the loss according to the partners capital accounts credited for the amount of the loss according to the partners capital accounts

Question 3.3. On a partnership balance sheet, the equity section will include ________. (Points : 20)

additional paid in capital capital stock partners capital accounts treasury stock

Question 4.4. In the absence of a partnership agreement, profits and losses are usually split ________. (Points : 20)

based on each partners investment based on each partners service based on a combination of each partners investment and service equally amongst partners

Question 5.5. Which of the following items would NOT be reported on the income statement of a partnership? (Points : 20)

salaries expense interest revenue depreciation expense income tax expense