Accting Chp 23

A business in which two or more persons combine their assets and skills

• partnership

• partnership agreement

• partner

• owner's equity

Cash received from the sale of assets during liquidation of a partnership

• distribution of net income

• realization

• liquidation of a partnership

• owner's equity

A partnership financial statement showing net income or loss distribution to partners

• distribution of net income statement

• realization

• partnership agreement

• owner's equity

A written agreement setting forth the conditions under which a partnership is to operate

• partner

• realization

• partnership agreement

• owner's equity

When a partner invests in office equipment, the entry includes

• debit to the partner's capital account

• debit to Office Equpment

• credit to Cash

• credit to Office Equipment

Partnership earnings are divided

• equally

• according to howlong the partner has been in the business

• according to the age of each partner

• according to the partnership agreement

A partner's drawing account

• has a normal debit balance

• has a normal credit balance

• can have a normal balance of either a debit or a credit

• increases on the credit side

When noncash assets are liquidated and the amount received is less than the book value of the asset liquidated, there is a

• net income

• net loss

• gain on the realization

• loss on the realization