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Match the Following Item with the Appropriate Accounting System

Question 58

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Match the following item with the appropriate accounting system components

Premises:
An unincorporated association of two or more persons to pursue a business for profit as co-owners.
The agreement between partners that sets terms under which the affairs of the partnership are conducted.
A financial statement that shows total capital balances at the beginning of the period, any additional investment by partners, the income or loss of the period, the partners' withdrawals and the ending capital balances.
The legal relationship among general partners that makes each of them responsible for paying the debts of the partnership if the other partners are unable to pay their shares.
A corporation that meets special tax qualifications so as to be treated like a partnership for income tax purposes.
A partner who assumes unlimited liability for the debts of the partnership.
A corporation that does not qualify for and elect to be treated like a partnership for income tax purposes and therefore is subject to income taxes.
A partnership that has two classes of partners, limited partners and general partners. Limited partners have no personal liability beyond the amount they invest in the partnership and have no active role except as specified in the partnership agreement.
A partnership that protects innocent partners from malpractice or negligence claims resulting from the acts of another partner.
The legal relationship among partners whereby each partner can commit or bind the partnership to any contract within the scope of the partnership's business.
Responses:
Statement of changes in partner’s equity
Limited partnership
Limited liability partnership
Unlimited liability of partners
Partnership contract
Partnership
General partner
Mutual agency
C Corporation
S Corporation

Correct Answer:

An unincorporated association of two or more persons to pursue a business for profit as co-owners.
The agreement between partners that sets terms under which the affairs of the partnership are conducted.
A financial statement that shows total capital balances at the beginning of the period, any additional investment by partners, the income or loss of the period, the partners' withdrawals and the ending capital balances.
The legal relationship among general partners that makes each of them responsible for paying the debts of the partnership if the other partners are unable to pay their shares.
A corporation that meets special tax qualifications so as to be treated like a partnership for income tax purposes.
A partner who assumes unlimited liability for the debts of the partnership.
A corporation that does not qualify for and elect to be treated like a partnership for income tax purposes and therefore is subject to income taxes.
A partnership that has two classes of partners, limited partners and general partners. Limited partners have no personal liability beyond the amount they invest in the partnership and have no active role except as specified in the partnership agreement.
A partnership that protects innocent partners from malpractice or negligence claims resulting from the acts of another partner.
The legal relationship among partners whereby each partner can commit or bind the partnership to any contract within the scope of the partnership's business.
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