ACCT 405 WEEK 7 QUIZ LATEST
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ACCT 405 Week 7 Quiz Latest
ACCT405
ACCT 405 Week 7 Quiz Latest
Question 1 (TCO 5)
The disadvantages of the partnership form of
business organization, compared to corporations, include
- the legal requirements for formation.
- unlimited liability for the partners.
- the requirement for the partnership to pay income
taxes.
- the extent of governmental regulation.
- the complexity of operations.
Question 2 (TCO 2)
Which of the following is not a characteristic
of a partnership?
- The partnership itself pays no income taxes.
- It is easy to form a partnership.
- Any partner can be held personally liable for all debts
of the business.
- A partnership requires written articles of partnership.
- Each partner has the power to obligate the partnership
for liabilities.
Question 3 (TCO 5)
The partnership of Charley, Sammy, and Tommy
was insolvent and will be unable to pay $30,000 in liabilities currently due.
Which recourse was available to the partnership’s creditors?
- They must present equal claims to the three partners as
individuals.
- They must try obtaining a payment from the partner with
the largest capital account balance.
- They cannot seek remuneration from the partners as
individuals.
- They may seek remuneration from any partner they
choose.
- They must present their claims to the three partners in
the order of the partners’ capital account balances.
Question 4 (TCO 5)
The partnership contract for Hal and Jan LLP
provides that Hal is to receive a bonus of 20% of net income and that the
remaining net income is to be divided equally. If the partnership income before
the bonus for the year is $57,600, Hal’s share of this prebonus income is
- $28,800.
- $33,600.
- $34,560.
- $43,200.
- $57,600.
Question 5 (TCO 5)
Roger and Wolger formed a partnership in the
Year 20×1. The partnership agreement provides for annual salary allowances of
$55,000 for Roger and $45,000 for Wolger. The partners share profits equally
and losses in a 60/40 ratio. The partnership had earnings of $80,000 for Year
20×2 before any allowance to partners. Which amount of these earnings should becredited to each partner’s capital account?
- Roger Wolger $40,000 $40,000
- Roger Wolger $43,000 $37,000
- Roger Wolger $44,000 $36,000
- Roger Wolger $45,000 $35,000
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