Select TRUE if the statement is correct, FALSE if its incorrect. Bythe contract of a * 1 point partnership, two or more persons bind themselves to contribute money, property, or industry to a common fund, without the intention of dividing the prot among themselves. Two or more persons may also * 1 point form a partnership for the exercise of a profession. G This is a required question Partnership with a Fixed Term * 1 point 21:02 .I1 0.68 68 4 Partnership with a Fixed Term * 1 point is one in which no time is specified and is not formed for a particular undertaking or venture and which may be terminated anytime by mutual agreement of the partners, or by will of any one partner alone; or one for a fixed term or particular undertaking which is continued by the partners after the termination of such term or particular undertaking without express agreement. True False A partnership may be * 1 point constituted in any form, except where immovable property or real rights are contributed, in which case a public instrument is necessary. True ! False. r-x 03'? 21 .02 .II "3:;- KB.."S A partner may dispose of his * 1 point right to share in prots on the investment in the partnership even without the consent of the other partners. A decision to use one * 1 point approach over the other will depend on the partner's agreement. In the absence of any agreement, the BONUS APPROACH IS PREFERABLE OVER THE GOODWILL APPROACH. One in which the whole * 1 point property of each partner at the n time of the constitution of the partnership becomes the One in which the whole property of each partner at the time of the constitution of the partnership becomes the common property of all of the partners, as well as the profits which they may acquire therewith. It is the intention of the partners to divide the property and all the profits that will be earned on the property among themselves. * 1 point 0 Universal Partnership of all Present Property 0 Universal Partnership of Prots 0 Particular Partnership 0 Limited Partnership One who takes no active part in the business and is not known or held out as a partner. The term is synonymous to Sleeping Partner. He may retire from the partnership without niuihn nn'l'ino and nahnn'l' ho * 1 point . r-x 0.?5 21 .02 .I a KRIS One who takes no active part * 1 point in the business and is not known or held out as a partner. The term is synonymous to Sleeping Partner. He may retire from the partnership without giving notice and cannot be held liable for the obligations of the rm subsequent to his withdrawal. 0 Silent Partner 0 Liquidating Partner 0 Ostensible Partner 0 Dormant Partner One who is liable for * 1 point partnership debts up to the extent of his capital contribution. He is also known as Special Partner. It is to be noted that limited partners are prohibited from having their own surnames in the partnership's title or business n name. Violation of such would make the limited nartner liable One who is liable for * 1 point partnership debts up to the extent of his capital contribution. He is also known as Special Partner. It is to be noted that limited partners are prohibited from having their own surnames in the partnership's title or business name. Violation of such would make the limited partner liable as a general partner insofar as third parties without notice are concerned. 0 General Partner 0 Limited Partner 0 General - Limited Partner 0 Managing Partner An account used to * 1 point summarize the temporary changes in his capital in the form of shares in earnings and withdrawals. 21:02 .Ill KB /S 694 An account used to * 1 point summarize the temporary changes in his capital in the form of shares in earnings and withdrawals. Drawing Account O Capital Account O Permanent Account O Temporary Account Cash contributed to the * 1 point partnership is recorded at: O Fair Value O Present Value O Face Value O Book Value In the absence of an * 1 point agreement, Non-cash assets contributed by the partners21:03 . KB/S |69 4 In the absence of an * 1 point agreement, Non-cash assets contributed by the partners should be valued at: O Book Value O Face Value Present Value Fair Market Value When assets are received by * 1 point the partnership and certain liabilities are assumed, it results to the following except: The partnership assets would O increase. Debit the individual asset accounts at agreed values. The partnership liabilities would O increase. Credit the appropriate liability amounts at agreed values. The partner's equity in the net O assets of the firm would increase. Credit the capital account of the partner at net (assets - liabilities) O The partner's equity will still be the same.When industry is contributed * 1 point into the partnership: 0 a memorandum entry is prepared any increase in value which takes 0 place must be shared by the partners 0 should be recorded at its total cost 0 shoud be recorded in its FMV Heaven agrees to invest land * 1 point owned by her in a partnership. This land was bought by her ve years ago at a cost of P15,000. At present, its fair market value is P75,000; that is, if Heaven were to sell the land today, she could ask for, and receive a price of P75,000 for the property. Should she invest her land in the partnership, it should be recorded on the partnership books at: n O P15,000 21:03 . KB/S (69 4 Heaven agrees to invest land * 1 point owned by her in a partnership. This land was bought by her five years ago at a cost of P15,000. At present, its fair market value is P75,000; that is, if Heaven were to sell the land today, she could ask for, and receive a price of P75,000 for the property. Should she invest her land in the partnership, it should be recorded on the partnership books at: O P15,000 P75,000 P90,000 O P60,000 Heaven agrees to invest land * 1 point owned by her in a partnership. This land was bought by her five years ago at a cost of P15,000. At present, its fair market value is P75,000; that is if Heaven were cell theO P90,000 O P60,000 Heaven agrees to invest land owned by her in a partnership. This land was bought by her ve years ago at a cost of P15,000. At present, its fair market value is P75,000; that is, if Heaven were to sell the land today, she could ask for, and receive a price of P75,000 for the property. Furthermore, she agreed to record the land at P15,000 to the partnership. Heaven should be credited with a capital investment of: O P60,000 O P75,000 O P90,000 n O P15,000 * 1 point