IC101 MIDTERM REVIEW

Which of the following refers to two or more persons who bind themselves to contribute to a common fund, with the intention of dividing the profits among themselves?

• Corporation

• Sole Proprietorship

• Partnership

• Cooperative

Which of the following describes the written contract by the partners which requires registration with the Securities and Exchange Commission?

• By-laws

• Partners Account

• Articles of Incorporation

• Articles of Co-Partnership

A partner may invest in the partnership in any of the following, EXCEPT?

• Non-cash asset

• Personal liability

• Cash

• Personal services or industry

Which of the following kind of partnership in which its main activity is to manufacture or purchase and sale of goods?

• General Partnership

• Trading Partnership

• Non-Trading Partnership

• Limited Partnership

Which of the following serves as the partnership's "shock absorber" for unfulfilled obligations?

• General Partnership

• Trading Partnership

• Non-Trading Partnership

• Limited Partnership

The estimated price of an asset that a seller is willing to sell and the buyer is also willing to buy in an open market is called _____________.

• Fair Market Value

• Book Value

• Replacement Value

• Current Value

Which of the following describes a partner who is not known as a partner but actively participates in running the partnership affair?

• Dormant Partner

• Secret Partner

• Nominal Partner

• Limited Partner

What type of assets may a partner not contribute to a partnership?

• Personal Credit Card

• Equipment

• Furniture

• Accounts receivable

Nico and Jas entered into a universal partnership of profits. At the time of the execution of the articles of partnership, Lea had a two-door apartment which he inherited from his father 3 years earlier. Revy, on the other hand, had a fleet of taxis that he purchased 2 years before. In the first year of the partnership, Lea earned P500,000.00 as a radio talent, while Revy won P1,000,000,00 in the lotto. During the same period, rentals of P2000,000.00 were realized from the operation of the fleet of taxis.  Which of the following belongs to the partnership?

• Lotto winnings of P1,000,000.00

• Salary of P500,000.00

• Fleet of taxis

• Two-door apartment

Personal withdrawal by a partner in anticipation of profits is not viewed as permanent in character. This requires a _______________.

• Debit to drawing account

• Credit to capital account

• Debit to capital account

• Credit to drawing account