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38. A partner whose liability for partnership debts is 47. The ownership in shares of a corporation is
limited to his capital contribution is called evidenced by a document called –
a. industrial partner c. limited partner a. shares c. share certificate
b. general partner d. secret partner b. stock warrants d. none of the above
39. A partner who contributes his work, labor or industry 48. Which of the following statement is true concerning
to the common fund of the partnership is called Accumulated Profits (Losses)?
a. limited partner c. industrial partner a. it has a normal balance of a credit
b. capitalist partner d. managing partner b. it represents the cumulative profit (losses)
c. it decreases when dividends are declared
40. Which of the following results in the dissolution of a d. all of the above
partnership?
a. The withdrawal of a partner from a partnership 49. Which of the following is entitled to dividends?
b. The receipt of share in profit by an existing a. treasury shares c. total outstanding liability
partner b. total shares issued and outstanding d. all
c. The contribution of additional assets to the
partnership by a existing partner 50. Treasury shares are recorded at
d. The winding up of the partnership and the a. fair value c. cost plus expenses
distribution of remaining assets to the partners b. acquisition cost d. none of the above
41. In dividends, declaration, there are three important 51. Cash Dividends Payable when not yet paid as of
dates to remember, except- Statement of Financial Position date is presented as
a. date of declaration c. date of record a. Current Asset c. Current Liability
b. date of incurrence d. date of payment b. Non-current Liability d. Income
c.
42. The process of winding up the business activity is 52. The maximum life of a corporation to exist is –
converting non-cash assets into cash, paying its liabilities a. 30 years c. 25 years
and distribution of cash and the remaining assets to b. 55 years d. 50 years
individual partners-
a. realization c. liquidation 53. This is the portion of Accumulated Profits (Losses)
b. dissolution d. none of the above account which can be declared as dividends.
a. Appropriated b. Unappropriated
43. Partnership is said to be dissolved when a – b. Restricted c. All of the above
a. new partner is admitted in an existing
partnership 54. Share certificates are issued to subscribers upon –
b. partner dies a. full payment of subscription
c. partner retires b. c. authorization
d. any of the above c. date of subscription
d. partial payment of subscription
44. Admission of a new partner by investment will –
a. increase both the asset and capitalization of the 55. The Share Premium Account is recorded as a credit
partnership when –
b. increase the asset of the partnership only a. shares are sold higher that par value
c. increase the capitalization of the partnership only b. share are sold at par value
d. none of these c. shares are sold less than par value
d. none of these
45. Failure to stipulate on how profit and loss be divided
among partners. It should be –
a. in proportion to what has been contributed