Match Each of the Following Statements with the Terms Below

question 196

Multiple Choice

Match each of the following statements with the terms below that provide the best definition.
-Startup costs

• A)Adjusted basis of each partnership asset.
• B)Operating expenses incurred after entity is formed but before it begins doing business.
• C)Each partner's basis in the partnership.
• D)Reconciles book income to taxable income.
• E)Tax accounting election made by partnership.
• F)Tax accounting calculation made by partner.
• G)Tax accounting election made by partner.
• H)Does not include liabilities.
• I)Designed to prevent excessive deferral of taxation of partnership income.
• J)Amount that may be received by partner for performance of services for the partnership.
• K)Theory under which a partnership's recourse debt is shared among the partners.
• L)Will eventually be allocated to partner making tax-free property contribution to partnership.
• M)Partner's share of partnership items.
• N)Must generally be satisfied by any allocation to the partners.
• O)Justification for a tax year other than the required taxable year.
• P)No correct match is provided.

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Definitions:

Circuit

In electricity, a path for electrons to flow from a source of higher electrical potential to a source of lower potential.

Timing Belt

A belt that synchronizes the rotation of the engine's crankshaft and camshaft, ensuring that the valves open and close at correct intervals.

Relative Compression Test

A quick way to identify a weak cylinder by cranking the engine with an inductive ammeter on the starter circuit. With a lab scope, cranking amperage can be graphed and correlated to a particular cylinder. A cylinder with low compression will draw fewer amps than a cylinder with higher compression, which will show on the graph.

Inductive Ammeter

An instrument used for measuring electrical current without the need to make direct contact with the conductor.