Asked by Anamarys Sanchez on May 13, 2024
Verified
Which of the following statements about partnerships is incorrect?
A) Partnership assets are co-owned by partners.
B) If a partnership is terminated the assets do not legally revert to the original contributor.
C) If the partnership agreement does not specify the manner in which net income is to be shared it is distributed according to capital contributions.
D) Each partner has a claim on assets equal to the balance in the partner's capital account.
Partnership Assets
Partnership assets include all the resources owned by a partnership, ranging from cash, property, and equipment to intangible assets, used in the operation of the partnership.
Capital Contributions
Funds or assets provided by owners or shareholders to a company for the purpose of growing the business or covering operational expenses.
- Identify the organizational features and juridical traits of partnerships.
- Comprehend the distribution of profits, losses, and liabilities among partners.
Verified Answer
Learning Objectives
- Identify the organizational features and juridical traits of partnerships.
- Comprehend the distribution of profits, losses, and liabilities among partners.
Related questions
In a Liquidation the Final Distribution of Cash to Partners ...
Once Assets Have Been Invested in the Partnership They Are ...
The Salinas-Milliken Partnership Is Terminated When Creditor Claims Exceed Partnership ...
Which of the Following Is Not a Principal Characteristic of ...
The Accounting Procedures Are the Same for Sole Proprietorships as ...