Please fill in the blank. 1) Partnership———— occurs whenever a partner withdraws
ID: 2328397 • Letter: P
Question
Please fill in the blank. 1) Partnership———— occurs whenever a partner withdraws or a new partnership is admitted. 2) A partnership characteristic which enables each partner to act on behalf of the partnership when engaging in partnership business is called ————. 3) A major disadvantage of the partnership form of organization is —————, which makes each partner personally and individually liable for all partnership liabilities. 4) The ———— ratio specific the basis for sharing income and loses. 5) An income ratio based on ———— balances may be appropriate when the amount of funds invested in yhe partnership is critical to the partnership. 6) A ———— allowance or ———— on partners’ capital accounts are not expenses of the partnership when they are specified as the basis for sharing income and losses. 7) In liqudating a partnership, it is necessary to convert ———— into cash and to allocate any ———— or ———— to the partners based on their income ratio. Please fill in the blank. 1) Partnership———— occurs whenever a partner withdraws or a new partnership is admitted. 2) A partnership characteristic which enables each partner to act on behalf of the partnership when engaging in partnership business is called ————. 3) A major disadvantage of the partnership form of organization is —————, which makes each partner personally and individually liable for all partnership liabilities. 4) The ———— ratio specific the basis for sharing income and loses. 5) An income ratio based on ———— balances may be appropriate when the amount of funds invested in yhe partnership is critical to the partnership. 6) A ———— allowance or ———— on partners’ capital accounts are not expenses of the partnership when they are specified as the basis for sharing income and losses. 7) In liqudating a partnership, it is necessary to convert ———— into cash and to allocate any ———— or ———— to the partners based on their income ratio. 1) Partnership———— occurs whenever a partner withdraws or a new partnership is admitted. 2) A partnership characteristic which enables each partner to act on behalf of the partnership when engaging in partnership business is called ————. 3) A major disadvantage of the partnership form of organization is —————, which makes each partner personally and individually liable for all partnership liabilities. 4) The ———— ratio specific the basis for sharing income and loses. 5) An income ratio based on ———— balances may be appropriate when the amount of funds invested in yhe partnership is critical to the partnership. 6) A ———— allowance or ———— on partners’ capital accounts are not expenses of the partnership when they are specified as the basis for sharing income and losses. 7) In liqudating a partnership, it is necessary to convert ———— into cash and to allocate any ———— or ———— to the partners based on their income ratio.Explanation / Answer
1- dissolution
2- mutual agency
3- unlimited liability
4-income ratio
5- closing capital
6- Salary allowance or interest
7- Assets, excess or deficiency