2.3.2.3.

True or False

Question 1
1 / 1 pts
Any salaries authorized for partners are regarded as a preliminary
step in the division of profits, not as an expense of the business.
Correct!
True
False

Question 2
1 / 1 pts

The income statement of a partnership differs from that of a single

proprietorship in only one respect: a final section is added to show
the division of the net income between partners.
Correct!
True
False

Question 3
1 / 1 pts
If the partners did not agree as to how profits are to be divided,
then such should be divided among the partners equally.
True
Correct!
False

Question 4
1 / 1 pts
An adequate accounting system and an accurate measurement of
income are not needed by a partnership because the net income is
divided among two or more partners.
Correct!
True
False

Question 5
1 / 1 pts
The Statement of Partners' Capital in a partnership takes the place
of the Capital Statement in a sole proprietorship.
Correct!
True
False

Question 6
1 / 1 pts
All partnerships, just like corporations, are subject to the 30%
income tax rate today.
True
Correct!
False

Question 7
1 / 1 pts
Bonus is allowed to partners only if the partnership net income is
sufficient, since bonus is based on net income.

Correct!
True
False

Question 8
1 / 1 pts
Unless otherwise agreed, allowance for salaries and interest are
allowed to partners whether there is a net income or a net loss;
whether the net income is sufficient or insufficient.

Correct!
True
False

Question 9
1 / 1 pts
All partners, whether capitalist or industrial, are to share on
whatever partnership profits or losses.

True
Correct!
False

Question 10
1 / 1 pts
Net income is represented by a credit balance in the income
summary account after closing into It all the operating (nominal)
accounts.

Correct!
True
False

Question 11
1 / 1 pts
The net income of the partnership is transferred to the drawing
accounts of the partners if the intention is to keep the capital account
intact for investments and permanent withdrawals of capital.

Correct!
True
False

Question 12
1 / 1 pts
The drawing account of the partner may have a debit or a credit
balance.

Correct!
True
False

Question 13
1 / 1 pts
If the partnership agreement specifies a method for sharing profits,
but not losses, then losses are shared in the same proportion as
Profits.

Correct!
True
False

Question 14
1 / 1 pts
Allowance for salaries and interest in a partnership agreement are
methods of allocating profits and losses to the partners.
Correct!
True
False

Question 15
1 / 1 pts
The percentage interest in a partnership is always the same as the profit sharing ratio

True
Correct!
False

Quiz Score: 15 out of 15