Match Each of the Following Statements with the Numbered Terms

question 100

Multiple Choice

Match each of the following statements with the numbered terms below that provide the best definition.
-General partnership

• A)Organizational choice of many large accounting firms.
• B)Partner's percentage allocation of current operating income.
• C)Might affect any two partners' tax liabilities in different ways.
• D)Partnership in which partners are liable only for any partner's malpractice.
• E)Amount that might be reported on either form 1065, page 1 or, on Schedule K.
• F)Transfer of asset to partnership followed by immediate distribution of cash to partner.
• G)Must have at least one general and one limited partner.
• H)Long-term capital gain might be recharacterized as ordinary income.
• I)All partners are jointly and severally liable for entity debts.
• J)Theory treating the partner and partnership as separate economic units.
• K)Partner's basis in partnership interest after tax-free contribution of asset to partnership.
• L)Partnership's basis in asset after tax-free contribution of asset to partnership.
• M)One way to calculate a partner's economic interest in the partnership.
• N)Owners are members.
• O)Theory treating the partnership as a collection of taxpayers joined in an agency relationship.
• P)Participates in management.
• Q)Not liable for entity debts.
• R)No correct match provided.

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Definitions:

Annual Payments

Payments that are made once a year.

Payout Figure

The total amount paid out to a policyholder in an insurance claim or to an investor in dividends or withdrawals.

Compounded Quarterly

A method of calculating interest where the accumulated interest is added to the principal sum every quarter (every three months), affecting the amount on which future interest is calculated.

Principal

The initial amount of money loaned or invested, excluding any interest or dividends.