Regarding Partnership Property

question 7

Multiple Choice

Regarding partnership property:

• A) only a managing partner has the right to use firm property for firm business.
• B) where a three-person partnership owns three autos, each partner owns one of the autos individually.
• C) on the death of a partner, that partner's share of partnership property vests in his or her next of kin.
• D) a creditor of a partner cannot proceed against any specific items of partnership property.

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Definitions:

Adjusting Entry

At the end of an accounting timeframe, records are made to attribute income and spending to the specific period in which they were incurred.

Accumulated Depreciation

The total sum of depreciation for a fixed asset that has been charged to expense since the asset was acquired and placed into service.

Book Value

The value of an asset as recorded on the balance sheet, calculated as the cost of the asset minus any accumulated depreciation.

Equipment Cost

The total amount spent on purchasing equipment, including the purchase price, taxes, shipping, and installation fees.