The Articles of Partnership Is a Contract Between Partners That

question 34

True/False

The articles of partnership is a contract between partners that specifies such items as the name, location, and nature of the business; the name, capital contribution, and duties of each partner; and the method of sharing profits and losses among the partners.

---

Definitions:

Bonds

Long-term debt securities issued by corporations or governments to raise capital, paying interest to holders.

Premium

A term that records the sale of stock at more than par value. In this book we use the account Paid-In Capital in Excess of Par to record the premium received.

Discount

A reduction in the price of goods or services, often used as a sales promotion or to encourage early payment.

Bonds Payable

A long-term liability account that records the amounts owed by a company to bondholders, to be repaid at a future date.