Question

1. A new incoming partner’s contribution may suggest either the presence of previously unrecorded goodwill or the appreciation of existing assets but not both.
   1. True
   2. False
2. Use of the bonus method and use of the goodwill method are mutually exclusive choices
   1. True
   2. False
3. Under the bonus method, the mew incoming partner’s initial capital balance is equal to that partner’s percentage interest in capital times the book value of the old partnership.
   1. True
   2. False
4. The goodwill method recognizes increases in asset values that have not been realized or purchased.
   1. True
   2. False
5. If a withdrawing partner receives consideration that is less than his/her capital balance, goodwill would not be recognized.
   1. True
   2. False
6. If only purchased goodwill could be recognized, then only transactions involving the withdrawal, versus the admission, of a partner would be applicable.
   1. True
   2. False
7. Unsatisfied personal creditors of a partner can attach to the net assets of the partnership without regard to the partner’s capital balance.
   1. True
   2. False
8. Amounts due to partners by way of loans to the partnership are usually combined with capital balances in order to avoid premature distribution during a liquidation.
   1. True
   2. False
9. Unsatisfied partnership creditors cannot attach to the net personal assets of a partner unless the partner has a debit capital balance.
   1. True
   2. False
10. Before distributing assets to partners as part of an installment liquidation, it is assumed that all non-cash assets are worthless.
    1. True
    2. False
11. The amounts to be distributed to partners, as determined by a schedule of safe payments, are generally different from the amounts suggested in a pre-distribution plan.
    1. True
    2. False
12. Legally speaking, amounts incurred as liquidation expenses must be paid before a distribution can be made to the partners.
    1. True
    2. False

Answer 1

Answer b this statement is false

Answer a this statement is true

Answer a this statement is true

Answer a this statement is true

Answer b this statement is false

Answer a statement is true

Answer b this statement is false

Answer a this statement is true

Answer athis statement is true

Answer a thi statement is true

Answer a this statement is true

Answer a this statement is true