The Partnership Form of Business Organization

question 221

Multiple Choice

The partnership form of business organization

• A) is a separate legal entity.
• B) is a common form of organization for service-type businesses.
• C) enjoys an unlimited life.
• D) has limited liability.

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Definitions:

Accounts Payable

Liabilities to creditors for goods or services that have been received but not yet paid for.

Credit

An accounting entry that increases liabilities or equity or decreases assets, representing a transfer of value in financial transactions.

Trial Balance

A bookkeeping report that lists the balances of all ledgers accounts to verify that total debits equal total credits.

Mathematical Equality

A situation in mathematics where two expressions are equivalent in value, denoted by the equal sign.