PARTNERSHIP ACCOUNTING

A partnership is a legal entity separate and distinct from its owner.

• TRUE

• FALSE

Partnership is a contract which has force of law between the contracting parties.

• TRUE

• FALSE

Partnership is created by operation of law.

• TRUE

• FALSE

There can be a partnership without agreement.

• TRUE

• FALSE

The essence of partnership is that each partner must share profits and losses of the business.

• TRUE

• FALSE

There is unlimited life in partnership.

• TRUE

• FALSE

Partnership is easier to form than sole proprietorship because it can be created by mere agreement of partners.

• TRUE

• FALSE

Corporation has a greater capability to raise large amount of capital than partnership.

• TRUE

• FALSE

In a partnership, each of the partners including limited partner is liable to the extent of his personal assets.

• TRUE

• FALSE

Partner by estoppel is one who is actually not a partner but who represents himself as one.

• TRUE

• FALSE