Which of the Following Is True of the Assets of a Partnership

question 74

Multiple Choice

Which of the following is true of the assets of a partnership?

• A)The partner who is more actively involved in the daily business affairs is considered to be the sole owner of the partnership's assets.
• B)Any new assets purchased by the partnership are jointly owned by each partner.
• C)When a partner contributes a particular asset to the firm,he is considered to be the sole owner of the asset.
• D)In case of liquidation of assets,the partners must be paid based on the profit sharing ratio of the partnership.

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Definitions:

Fixed Cost

Any cost that in total does not change when the firm changes its output.

Firm's Output

The total quantity of goods or services produced by a company within a specified period.

Variable Cost

Costs that vary directly with the level of production or service provision, increasing as production increases and decreasing as production decreases.

Fuel Payments

Money expended to cover the cost of fuel, often in the context of transportation, heating, or energy production.