Accounting Help

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1.The ability of one partner to enter into a contract binding all other partners is termed:
A) Mutual Agency 
B) Unlimited liability 
C) Partnership agreement 
D) Pass-through entity.
2. In a sole proprietorship the Drawing account is similar to what account in a corporation?
A) Capital account
B) Retained Earnings
C) Dividends
D) Common Stock
3. Which of the following is not true about a partnership?
A) It is easy to form a partnership.
B) A partnership has personal limited liability.
C) There is no double taxation in a partnership.
D) A partnership has a limited life.
4. On which financial statement is each partner’s capital account? 
A) Balance Sheet
B) Income State
C) Statement of Retained Earnings
D) Cash Flow Statement
4. The partner’s Capital account is what type of account and what is the Capital account’s normal balance?
A) Asset account, normal debit balance
B) Equity account, normal debit balance
C) Asset account, normal credit balance
D) Equity account, normal credit balance
5. Which of the following is not true for a corporation?
A) A corporation is a separate entity from its owners.
B) Ownership can be transferred when stock is exchanged
.C) Owners have limited liability.
D) Corporations are not taxed.

 

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