Question

Matching Question 207 Match the following statements to the appropriate terms. Each partner is personally and individually liable for partnership debts. Made on basis of partners' capital balances. Explains changes in individual partner's capital accounts during a period. Each partner can bind the partnership so long as the action appears to be appropriate for the partnership Business terminates. Results in an increase in total net assets and total capital of the partnership Capital account with a debit balance. The basis for sharing income and losses. Total net assets and total capital of the partnership do not change. Written contract establishing duties and responsibilities of partners.

Answer 1

The answers are as follows:

1) Each partner is personally and individually liable for partnership debts : Unlimited Liability

2) Made on basis of partner's capital balances : Distribution of cash to partners in liquidation of partnership.

3) Explains change in individual partner's capital accounts during the period : Partner's Capital Statements

4)Each partner can bind the partnership as long as the action appears to be appropriate for the partnership : Mutual Agency

5) Business terminates : Partnership liquidation

6)Results in an increase in total net assets and total capital of the partnership : Admission by Investment

7) Capital account with a debit balance : Capital Deficiency

8) The basis for sharing income and losses : Income Ratio

9) Total net assets and total capital of the partnership do not change : Purchase of Interest

10) Written contract establishing duties and responsibilities of partners : Partnership Agreement