Quiz 2
Articles of Co-Partnership
- causes of dissolution of partnership - the effective date of the contract - the conditions under which the partners may withdraw money or other assets DOES NOT INCLUDE - the rights and duties of the employees to be hired
ostensible/active partner
a partner who is known to the public as a partner and who takes active part in the management of the firm's affairs
A and B formed a partnership. A is to contribute sufficient cash to equal the net assets contributed by B. However, the amount credited to B as initial contribution is more than net assets transferred to the partnership. Which of the following is correct? a. B is given Goodwill b. B is given a Bonus c. B has additional investment d. There is loan from Partner B
a. B is given Goodwill
the non cash contributions of the partners to form a partnership are recorded by the partnership at their ____
agreed value
Mutual Agency
characteristic of partnership refers that any partner of the partnership may act as agent in dealing with the partnership affairs
Which of the following are the kinds of partnership according to liability? a. general co-partnership b. limited partnership c. industrial partnership d. a and b only
d. a and b only
Which of the following relate to the capital share of a partner in a partnership? a. the percentage of equity that a partner has on the net assets b. proportionate to a partner's capital contribution c. may not be proportionate to capital contribution due to bonus d. all of the above
d. all of the above
A partnership is formed by two individuals by two individuals who were previously sole proprietors. Non cash assets invested would be recorded into the partnership at the proprietor's ___
fair value of the property at the date of investment
best attributes of a partnership
limited life of the business and unlimited liability of partners
When a partnership cannot pay its debts with business assets, the partners _____
must use their personal assets to meet the debts
Universal partnership of all profits
partnership which comprises all that the partners ma acquire by their industry or work and the use of properties which the partners may acquire later on
De Facto partnership (partner by fact)
A and B form a partnership. However, it turned out that there are some required documents which were not yet submitted to the Philippine Securities and Exchange Commission (SEC) in processing their applications for registration. What type of partnership is created?
provisions of Article of Co-partnership ; except
INCLUDE - causes of partnership dissolution - withdrawals allowed to partners - profit sharing ratio EXCEPT - taxes paid by the partnership
secret partner
a partner who takes active part in the business but whose connection with the partnership is concealed to the public
A contributed only P400,000 cash while B contributed P600,000 cash in a newly formed partnership, however, they agreed that they shall be credited equally for their capital contributions. Which of the following statements is correct? a. A is given a Goodwill b. A is given a Bonus c. B has withdrawal of P100,000 d. there is Loan to Partner A of P100,000, which is receivable by the partnership
b. A is given a Bonus
All of the following affect a partner's capital account except: a. additional investment b. payment of a liability c. partnership net income or loss d. withdrawal of the partner
b. payment of a liability
Which of the following is correct? a. the contribution of cash should be recorded in the partnership book at its fair value b. there is a need for memorandum entry in case of industrial partner c. properties and non cash contributions should be recorded at agreed value d. contributions of services may be allowed in a partnership
b. there is a need for memorandum entry in case of industrial partner
Which of the following is not required of a partnership? a. filing of Articles of Co-Partnership with the SEC b. Registration with the Bureau of Internal Revenue c. Getting Business Permit from the local municipality d. Registration with GSIS, HDMF and Philippine Health Insurance Corporations
d. Registration with GSIS, HDMF and Philippine Health Insurance Corporations
Which of the following is true? a. an individual must contribute capital to become a partner b. if a partner contributes accounts receivable, this should be recorded at net realizable value c. the characteristic of unlimited liability does not apply to a limited partnership d. a partnership whose capital is P3000 and above should be registered with the SEC
d. a partnership whose capital is P3000 and above should be registered with the SEC
advantages of a partnership ; except
divided authority among members
