Partnership Account: Terminologies Used - SS2 Accounting Past Questions and Answers - page 1
1
What is capital in a partnership account?
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A
The amount of money or assets that each partner has invested in the partnership
B
The profits earned by the partnership
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C
The expenses incurred by the partnership
D
The amount of money owed by the partnership to creditors
2
What is goodwill in a partnership account?
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A
The value of the partnership's reputation and customer base
B
The amount of money paid by the partnership to each partner for the use of their invested capital
C
The portion of profits that is set aside for future business needs or as a contingency fund
D
The legal document that outlines the terms and conditions of the partnership
3
What is interest on capital in a partnership account?
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A
The amount of money paid by the partnership to each partner for the use of their invested capital
B
The amount of money owed by the partnership to creditors
C
The portion of profits that is set aside for future business needs or as a contingency fund
D
The allocation of profits among partners based on their ownership percentage
4
What is a partner's current account in a partnership account?
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A
The record of transactions of each partner with the partnership
B
The legal document that outlines the terms and conditions of the partnership
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C
The value of the partnership's reputation and customer base
D
The allocation of profits among partners based on their ownership percentage
5
What are reserves in a partnership account?
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A
The portion of profits that is set aside for future business needs or as a contingency fund
B
The amount of money paid by the partnership to each partner for the use of their invested capital
C
The value of the partnership's reputation and customer base
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D
The allocation of profits among partners based on their ownership percentage
6
What is the partnership agreement in a partnership account?
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7
What is dissolution in a partnership account?
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