The Owners of a Partnership

question 197

Multiple Choice

The owners of a partnership:

• A)Have created an entity that can also be called a sole proprietorship.
• B)Have unlimited liability.
• C)Have to have a written agreement in order to be legal.
• D)Have created a legal organization separate from its owners.
• E)Are called shareholders.

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Definitions:

Accrued Liabilities

Financial obligations that a company has incurred during a period but has not yet paid by the end of that period.

Accounts Payable

A liability account that records amounts a company owes to suppliers for goods and services purchased on credit.

Statement Of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations, investment, and financing activities.

Accounts Receivable

Money owed to a business by its customers for products or services delivered on credit.