Which of the Following Is Correct with Regard to Partnership

question 70

Multiple Choice

Which of the following is correct with regard to partnership property?

• A) Like partnership capital, it is a fixed amount set forth in the articles of partnership.
• B) Under the RUPA, there is a rebuttable presumption that unless a contrary intention appears, property acquired with partnership funds is partnership property.
• C) The RUPA sets forth two irrebuttable presumptions that apply when the partners did not express their intent, one of which is that property acquired in the name of one of the partners without an indication of her capacity as a partner and without use of partnership funds is presumed to be that partner's separate property.
• D) If there is no express agreement whether property owned by a partner before formation of the partnership and used in the partnership business is an asset of the partnership, the fact that taxes, liens, and expenses have been paid by the partnership is irrelevant.

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Definitions:

Investing Activities

Transactions involving the purchase and sale of long-term assets or investments, part of a company’s cash flow.

Cash Payments

Financial transactions involving the outflow of cash to settle obligations or purchase goods and services.

Debt Principal

The original amount of money borrowed or the remaining balance of a loan, exclusive of interest.

Double-Entry Bookkeeping

An accounting system where every transaction affects at least two accounts to maintain a balanced set of financial records.