When Comparing Partnerships to Sole Proprietorships,an Advantage of Partnerships Is

question 88

Multiple Choice

When comparing partnerships to sole proprietorships,an advantage of partnerships is that they:

• A)limited liability for the general partner.
• B)are easier to terminate.
• C)cost less to organize.
• D)give the firm a stronger financial foundation.

Analyze the effect of non-cash transactions and events on the statement of cash flows.

Calculate cash flows from operating activities using the indirect method.

Recognize the treatment of losses and gains from the sale of assets in the statement of cash flows.

Understand the indirect and direct methods for preparing the statement of cash flows.

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Definitions:

Customer's Note

It is a formal promissory note or debt instrument where the customer promises to pay a specific sum of money to the issuer, often used in business as a form of short-term financing.

Bank Statement Adjustment

The process of amending the balance in a company's record of its bank account to match the balance reported on the bank statement, often involving adding or subtracting items like checks or bank charges.

Outstanding Checks

Checks that have been issued and recorded in an entity's accounting system but have not yet been cashed or cleared by the bank.

Bank Statement Adjustment

The process of modifying the balance shown in a bank statement to match the adjusted balance in the ledger accounts, usually due to timing differences in recording transactions.