Multiple-Choice-Questions Final
Multiple-Choice-Questions Final
Multiple-Choice-Questions Final
1. Under the Uniform Partnership Act, loans made by a partner to the partnership are treated as:
a. advances to the partnership for which interest shall be paid from the date of the advance.
b. advances to the partnership that are carried in the partners' capital accounts.
c. Accounts Payable of the partnership for which interest is paid.
d. advances to the partnership for which interest does not have to be paid.
3. Which of the following accounts could be found in the general ledger of a partnership?
a. Option A
b. Option B
c. Option C
d. Option D
a. A partner with a negative capital balance must contribute personal assets to the partnership that are
sufficient to bring the capital account to zero.
b. If a partner with a negative capital balance is personally insolvent, the negative capital balance may be
absorbed by those partners having a positive capital balance according to the residual profit and loss sharing
ratios that apply to all the partners.
c. If a partner with a negative capital balance is personally insolvent, the negative capital balance may be
absorbed by those partners having a positive capital balance according to the residual profit and loss sharing
ratios of all the partners in the partnership
7. If the partnership agreement provides a formula for the computation of a bonus to the partners, the bonus
would be computed
a. next to last, because the final allocation is the distribution of the profit residual.
a. Matching Principle
a. I & II
b. III only
c. I, II & III
a. Sell all non-cash assets and allocate the resulting gain or loss to the partners