Match Each of the Following Statements with the Terms Below

question 49

Short Answer

Match each of the following statements with the terms below that provide the best definition.
a. Organizational choice of many large accounting firms.
b. Partner's percentage allocation of current operating income.
c. Might affect any two partners' tax liabilities in different ways.
d. Partnership in which partners are only liable for torts and malpractice.
e. Expense might be reported on either form 1065, page 1 or on Schedule K.
f. Transfer of asset to partnership followed by immediate distribution of cash to partner.
g. Must have at least one general and one limited partner.
h. Long-term capital gain might be recharacterized as ordinary income.
i. All partners are jointly and severally liable for entity debts.
j. Theory treating the partner and partnership as separate economic units.
k. Partner's basis in partnership interest after tax-free contribution of asset to partnership.
l. Partnership's basis in asset after tax-free contribution of asset to partnership.
m. One way to calculate a partner's economic interest in the partnership.
n. Owners are "members."
o. Theory treating the partnership as a collection of taxpayers joined in an agency relationship.
p. Participates in management.
q. Not liable for entity debts.
r. No correct match provided.
-Business interest

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Definitions:

Opportunity Cost

The cost of the next best alternative foregone when making a decision.

Production Possibilities Frontier

A graph that shows the combinations of two goods that an economy can produce using all available resources and technology efficiently.

Constant

A value or factor that does not change in mathematical expressions or experiments, representing stability within a specified context.

Efficient

Describes a system or process that achieves its objectives with minimal waste of time or resources.