7/13/23, 8:22 PM Chapter Exam - Partnership Formation: Group 1 AC 1104 - INTRODUCTION TO PARTNERSHIP AND CORPORATION
Chapter Exam - Partnership Formation
Due Jun 22 at 9:40am Points 50 Questions 20
Available Jun 22 at 9am - Jun 22 at 9:40am 40 minutes Time Limit 40 Minutes
Instructions
Choose the best answer for each of the following questions. You are required to answer twenty (20)
questions consisting of fifteen (15) theory questions and five (5) problem questions. Perfect score is 50
points. Time limit is 40 minutes. Questions are given one at a time and locked after answering. Read the
questions CAREFULLY.
This quiz was locked Jun 22 at 9:40am.
Attempt History
Attempt Time Score
LATEST Attempt 1 39 minutes 32 out of 50
Score for this quiz: 32 out of 50
Submitted Jun 22 at 9:39am
This attempt took 39 minutes.
Question 1 2 / 2 pts
In the absence of any agreement, non-cash assets invested into a
partnership are recorded at -
Correct! their fair market value
their original cost
their carrying value
[Link] 1/12
7/13/23, 8:22 PM Chapter Exam - Partnership Formation: Group 1 AC 1104 - INTRODUCTION TO PARTNERSHIP AND CORPORATION
their sound value
Question 2 2 / 2 pts
A partnership is -
A. created by operation of law
B. created by voluntary agreement of the parties
C. operated by at least two persons
D. dissolved by death of the partners
E. none of the above
Correct! B
D
C
E
A
Question 3 2 / 2 pts
Which of the following is not a characteristic of partnership?
A. Limited life
B. Mutual agency
C. Co-ownership of properties invested
D. Voluntary association
[Link] 2/12
7/13/23, 8:22 PM Chapter Exam - Partnership Formation: Group 1 AC 1104 - INTRODUCTION TO PARTNERSHIP AND CORPORATION
E. None of the above
B
A
E
Correct! D
C
Question 4 2 / 2 pts
A partnership where the individual property of each partner at the time of
partnership formation becomes the common property of all the partners
as well as the profits that will be derived from the business.
Partnership at will
Particular partnership
Correct! Universal partnership of all present property
Universal partnership of profits
Question 5 2 / 2 pts
Non-cash assets invested into a partnership are recorded at -
[Link] 3/12
7/13/23, 8:22 PM Chapter Exam - Partnership Formation: Group 1 AC 1104 - INTRODUCTION TO PARTNERSHIP AND CORPORATION
their sound value
their carrying value
their original cost
Correct! values agreed upon by partners
their fair market value
Question 6 0 / 2 pts
Which of the following statements is (are) correct?
I. Gross claims on customers are carried forward to the partnership.
II. The partnership does not carry forward any accumulated depreciation
from the books of previous entity.
ou Answered Only the second statement is correct
Only the first statement is correct
Neither of the statements is correct
orrect Answer Both statements are correct
Question 7 2 / 2 pts
I. A general partner is one who is liable for partnership debts up to the
extent of his interest in the partnership.
[Link] 4/12
7/13/23, 8:22 PM Chapter Exam - Partnership Formation: Group 1 AC 1104 - INTRODUCTION TO PARTNERSHIP AND CORPORATION
II. De facto partnership is established and organized in accordance with
all the legal requirements for its existence.
III. A capitalist-Industrial partner contributes money or property only.
Correct! False, false, false
False, true, false
True, false, true
True, false, false
False, false, true
Question 8 2 / 2 pts
Which of the following statements is not correct?
A. A silent partner takes an active part in the business of the partnership
and is not known by outsiders to be a partner.
B. In a limited partnership, all of the partners have limited liability for the
debts of the partnership.
Statement I only
Correct! Statements I and II
None of the statements
Statement II only
[Link] 5/12
7/13/23, 8:22 PM Chapter Exam - Partnership Formation: Group 1 AC 1104 - INTRODUCTION TO PARTNERSHIP AND CORPORATION
Question 9 2 / 2 pts
Which of the following statements is false?
I. In mutual agency, a partner can bind the other partners to a contract if
he is acting within his express or implied authority.
II. There can be a partnership without contribution of money, property or
industry to a common fund.
Statement I only
Correct! Statement II only
Neither of the statements is false
Statements I and II
Question 10 2 / 2 pts
A partner who takes charge of the winding up of partnership affairs upon
dissolution.
Silent partner
Nominal partner
Correct! Liquidating partner
Dormant partner
Managing partner
[Link] 6/12
7/13/23, 8:22 PM Chapter Exam - Partnership Formation: Group 1 AC 1104 - INTRODUCTION TO PARTNERSHIP AND CORPORATION
Question 11 2 / 2 pts
The price at which an asset or liability could be exchanged in a current
transaction between knowledgeable, unrelated willing partners.
Sound value
Correct! Fair market value
Carrying value
Current value
Question 12 2 / 2 pts
On January 1, 2023, Pepe and Pilar formed a partnership. Pepe
contributed cash. Pilar, previously a sole proprietor contributed property
other than cash, including building subject to a mortgage, which was
assumed by the partnership. Pilar's capital account at January 1, 2023
should be recorded at -
A. The fair value of the property at January 1, 2023.
B. Pilar's book value of the property at January 1, 2023.
C. The fair value of the property less the mortgage payable at January 1,
2023.
D. Pilar's book value of the property less mortgage payable at January 1,
2023.
A
Correct! C
D
[Link] 7/12
7/13/23, 8:22 PM Chapter Exam - Partnership Formation: Group 1 AC 1104 - INTRODUCTION TO PARTNERSHIP AND CORPORATION
B
Question 13 2 / 2 pts
A partner who contributes his work, labor or industry to the common fund
of the partnership is -
a secret partner
Correct! an industrial partner
a limited partner
a general partner
a nominal partner
Question 14 2 / 2 pts
A partnership organized for the exercise of a common profession, and
usually renders service based on the partners' acquired profession.
Correct! General professional partnership
Universal partnership
Commercial partnership
Trading partnership
[Link] 8/12
7/13/23, 8:22 PM Chapter Exam - Partnership Formation: Group 1 AC 1104 - INTRODUCTION TO PARTNERSHIP AND CORPORATION
Question 15 2 / 2 pts
Which of the following statements is correct?
I. Secret partner is a partner who is not known as a partner and does not
actively participate in running the partnership affair.
II. Partnership at will is formed for a particular undertaking and may be
terminated anytime by mutual agreement of the partners.
Both statements are correct
Neither of the statements is correct
Only the first statement is correct
Correct! Only the second statement is correct
Question 16 0 / 4 pts
Gabby and Alma formed a partnership. Gabby contributed cash of
P45,000 and a computer costing P90,000. Alma contributed equipment
costing P90,000. The current market values of non-cash assets
contributed by the partners are: computer - P67,500 and equipment -
P112,500. The partnership will not assume the P22,500 liability on the
equipment contributed by Alma. What amount will be credited to each
partner's capital accounts?
Gabby-112,500;Alma-90,000
orrect Answer Gabby-112,500; Alma-112,500
ou Answered Gabby-135,000; Alma-90,000
[Link] 9/12
7/13/23, 8:22 PM Chapter Exam - Partnership Formation: Group 1 AC 1104 - INTRODUCTION TO PARTNERSHIP AND CORPORATION
Gabby-135,000;Alma-67,500
Question 17 0 / 4 pts
Pedro and Juan formed a partnership on June 1, 2022 and contributed
the following assets:
Pedro Juan
Cash P70,000
Equipment (book value) P50,000
The equipment has been appraised at P55,000 but was subject to a
chattel mortgage of P10,000 that was assumed by the partnership. The
partners agreed to share profits and losses equally. Juan's capital account
at June 1, 2022 should be -
orrect Answer 45,000
55,000
40,000
ou Answered 50,000
Question 18 0 / 4 pts
Diane and Diana started a partnership. Diane contributed a building that
she purchased 10 years ago for P200,000. The accumulated depreciation
on the building on the date of formation of the partnership is P50,000 and
[Link] 10/12
7/13/23, 8:22 PM Chapter Exam - Partnership Formation: Group 1 AC 1104 - INTRODUCTION TO PARTNERSHIP AND CORPORATION
their fair value is P220,000. What amount will Diane's capital account be
credited on the book of the partnership?
ou Answered 170,000
150,000
orrect Answer 220,000
200,000
Question 19 4 / 4 pts
Max, Rene and Ricardo formed a partnership on January 1, 2022. They
agreed that Max will contribute an equipment with a total fair value of
P60,000; Rene will contribute a delivery equipment with a fair value of
P120,000; and Ricardo will contribute cash. If Ricardo wants a one-third
interest in the capital and profits, how much cash should he contribute?
100,000
80,000
Correct! 90,000
120,000
Question 20 0 / 4 pts
Pedro and Juan formed a partnership on June 1, 2022 and contributed
the following assets:
[Link] 11/12
7/13/23, 8:22 PM Chapter Exam - Partnership Formation: Group 1 AC 1104 - INTRODUCTION TO PARTNERSHIP AND CORPORATION
Pedro Juan
Cash P70,000
Equipment (book value) P50,000
The equipment has been appraised at P55,000 but it was subjected to a
chattel mortgage of P10,000 that was assumed by the partnership. The
partners agreed to share profits and losses equally, What is the journal
entry to record the investment of Juan in the partnership books?
A. Equipment P 50,000
Mortgage payable P 10,000
Juan, Capital 40,000
B. Equipment P 55,000
Mortgage payable P 10,000
Juan, Capital 45,000
C. Equipment P 50,000
Juan, Capital P 50,000
D. Equipment P55,000
Juan, Capital P 55,000
C
D
ou Answered A
orrect Answer B
Quiz Score: 32 out of 50
[Link] 12/12
