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Mutual agency implies that each partner in a partnership

29/04/2021 Client: muhammad11 Deadline: 2 Day

Multiple Choice Questions
1. In a partnership, mutual agency means that
a. One partner is designated as agent, to act for all partners.
b. Any partner may act on behalf of the partnership.
c.
Partners have unlimited liability for partnership debts.
d. Partners are co-owners of partnership property.
2. In computing the net income of a partnership, expenses include operating expenses and
a. Partners' loan interest and partners' salaries.
b. Partners' loan interest but not partners' salaries.
c. Partners' salaries but not partners' loan interest.
d. No items related to partners.
Use the following information to answer questions 3 and 4 below.
Two individuals form a partnership. Amos invests $75,000 and Bemus invests $25,000, but each is to have an equal interest in partnership
capital.
3. Under the bonus method, capital credited to Amos would be
a. $75,000.
b. $50,000.
c. $37,500.
d. $25,000.
4. Partnership net income for the year is $140,000. Adam's share of net income is
a. $14,000.
b. $12,000.
c. $42,000.
d. $ 4,000.
5. Partnership net income for the year is $40,000. Adam's share of net income is
a. $ 0.
b. $(18,000).
c. $ 42,000.
d. $(12,000).
Use the following information to answer questions 7-12 below.
The balance sheet of the Troy Partner

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