1) In a set of partnership accounting records, the account for each partner named “withdrawals” is most similar to which of the following accounts found on a corporation's records?
A) Long term liabilities
B) Dividends payable
C) Accumulated depreciation
D Dividends declared
E) Additional paid in capital
2. Over the years, a number of different types of organizations have been developed to take advantage of benefits of partnerships and corporations at once including:
A) multi-national corporations using IFRS accounting standards.
B) sole proprietorships in the U.S. only.
C) limited liability partnerships.
D) consolidated entities sharing control.
E) federally chartered not-for-profits.
Answers
· Answer #1
Correct Answer = Option ‘D’ Dividend declared.
>Dividend declared is accounted for in ‘dividend account’ which
has a normal DEBIT balance.
>Withdrawals accounts also have normal DEBIT balance.
>All other options have normal CREDIT balance.
· Answer #2
Correct Answer = Option ‘C’ Limited Liability Partnerships are
those organisations that enjoy the benefits of BOTH -partnership
and corporations at once.
1) In a set of partnership accounting records, the account for each partner named “withdrawals” is...
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