Which of the Following Is a Characteristic of a General

question 194

Multiple Choice

Which of the following is a characteristic of a general partnership?

• A) The partners have co-ownership of partnership property.
• B) The partnership is subject to federal income tax.
• C) The partnership has an unlimited life.
• D) The partners have limited liability.

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Definitions:

Interest

The charge for the privilege of borrowing money, typically expressed as an annual percentage rate.

Allowance Method

An accounting technique used to estimate and account for bad debts, allowing a company to anticipate and reduce accounts receivable to a more realistic value.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid for.

Allowance for Doubtful Accounts

A contra-asset account designated to approximate the amount of a company's accounts receivable that is likely uncollectible.