All of the Following Statements About Partnerships Are True Except

question 161

Multiple Choice

All of the following statements about partnerships are true except

• A)partners must share profits and losses equally.
• B)a change in ownership will dissolve the partnership.
• C)any partner can enter into a binding agreement with a third party.
• D)all partners have unlimited liability.

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Definitions:

Credit Entries

Bookkeeping records that increase liabilities or equity or decrease assets on a company's balance sheet.

Liability Account

A financial accounting account that represents obligations to pay debts or amounts owed to others.

Capital Account

An account showing the net worth of a business entity, including its equity and investments.

Asset Account

An account that records the assets owned by a company, showing their value on the balance sheet.