财务会计英语 练习及答案ch13.docVIP

CHAPTER 13 ACCOUNTING FOR PARTNERSHIPS AND LIMITED LIABILITY CORPORATIONS Chapter 13—Accounting for Partnerships and Limited Liability Corporations TRUE/FALSE 1. There are only four legal structures to form and operate a business. ANS: F DIF: 1 OBJ: 01 2. In a general partnership, each partner is individually liable to creditors for debts incurred by the partnership, to the extent of the partners capital balance. ANS: F DIF: 1 OBJ: 01 3. A partnership is a legal entity separate from its owners. ANS: F DIF: 1 OBJ: 01 4. A partnership is subject to federal income taxes. ANS: F DIF: 1 OBJ: 01 5. A disadvantage of partnerships is the mutual agency of all partners. ANS: T DIF: 1 OBJ: 01 6. Each partnership must have a written partnership agreement. ANS: T DIF: 1 OBJ: 01 7. Each partner may withdraw the assets he or she contributed to the partnership at any time. ANS: F DIF: 2 OBJ: 01 8. When compared to a corporation, one of the major disadvantages of the partnership is its limited life. ANS: T DIF: 1 OBJ: 01 9. When compared to a corporation, one of the major advantages of a partnership is its ease of formation. ANS: T DIF: 1 OBJ: 01 10. Under a Subchapter S Corporation, the IRS allows income to pass through the corporation to the individual stockholders without the corporation having to pay taxes on the income. ANS: T DIF: 2 OBJ: 01 11. A Limited Liability Corporation is a business entity form that combines the advantages of the corporation and the partnership forms. ANS: T DIF: 1 OBJ: 01 12. For tax purposes, a Limited Liability Corporation may elect to be treated as a partnership. ANS: T DIF: 1 OBJ: 01 13. The Limited Liability Corporation may elect to be manager managed rather than member managed which means that only authorized members may legally bind the corporation. ANS: T DIF: 1 OBJ: 01 14. Each partner has a separate capital and withdrawal account. ANS: T DIF: 1 OBJ: 02 15. The