Which Statement Best Describes How a Partnership Comes into Existence

question 53

Multiple Choice

Which statement best describes how a partnership comes into existence?

• A) The partners must sign a written partnership agreement.
• B) The partners must register the partnership.
• C) Two or more people carry on business together with a view to profit.
• D) Two or more people purchase property together.

Identify the process of recording and posting transactions in accounting records.

Recognize the accounts that increase with debits and those that increase with credits.

Understand how different transactions impact stockholders' equity.

Know the initial point of entry for accounting transactions.

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Definitions:

Accounts Payable

Money owed by a company to its creditors for goods and services that have been delivered but not yet paid for.

Enter Bills Window

A feature in accounting software where users can input and manage bills they need to pay to suppliers or service providers.

Checking Account

A bank account from which payments can be ordered by the account holder, typically used for day-to-day financial transactions.

Accounts Payable Aging

A report that categorizes a company's accounts payable according to the period of time an invoice has been outstanding, helping to manage debts effectively.