Exam 16: Accounting for Partnerships

Partners in a partnership are taxed on _______________________, not on their withdrawals.

When partners invest in a partnership, their capital accounts are credited for the amount invested.

If partners agree on how to share income, but say nothing about losses, then losses are shared ___________________.

A _____________________ is an unincorporated association of two or more people to pursue a business for profit as co-owners.

If at the time of partnership liquidation, a partner has a $5,000 capital deficiency and pays the partnership $5,000 out of personal assets to cover the deficiency, then that partner is entitled to share in the final distribution of cash.

In a limited partnership the general partner has unlimited liability.