In the Absence of Any Express or Implied Agreement to the Contrary

question 40

Multiple Choice

In the absence of any express or implied agreement to the contrary,

• A) a new partner may be admitted to a partnership by the decision of a majority of the partners.
• B) no partner is entitled to payment for acting in the partnership business.
• C) all partners may share equally in partnership capital and profits and must contribute equally towards all losses.
• D) a new partner may be admitted to a partnership by the decision of a majority of the partners and no partner is entitled to payment for acting in the partnership business.
• E) all partners may share equally in partnership capital and profits and must contribute equally towards all losses and no partner is entitled to payment for acting in the partnership business.

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Definitions:

U.S. GAAP

The Generally Accepted Accounting Principles in the United States, a framework of accounting standards and procedures used in the U.S. to compile financial statements.

Prior Service Cost

The cost of retroactive benefits awarded in a pension plan amendment, which is recognized over future periods.

Pension Plans

Financial programs established by employers to provide retirement income for employees.

Amend Benefits

The act of making changes to the terms or conditions of employee benefits plans.