Which of the Following Statements About Partnerships Is False

question 161

Multiple Choice

Which of the following statements about partnerships is false?

• A) A partner cannot sell his or her interest without the other partners' consent.
• B) The partnership terminates upon the death of a partner.
• C) A partner cannot retire without the other partners' consent.
• D) General partnerships are limited to ten partners.
• E) It is easier to borrow money than a sole proprietorship.

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Definitions:

Depreciation Expense

The allocated portion of the cost of a tangible asset that is expensed in each accounting period during its useful life, reflecting wear and tear, deterioration, or obsolescence.

Indirect Method

A method of preparing the cash flow statement in which net income is adjusted for changes in balance sheet accounts to calculate the cash from operating activities.

Operating Activities

These involve the core day-to-day functions and transactions of a business that are directly related to its primary operations, typically reflected in the cash flows from operating activities section of the cash flow statement.

Gain on Sale

The financial profit obtained from selling an asset for more than its purchase price or book value.