Self Assessment Quizzes

CHAPTER 27: Section 2 Division of Income and Loss

	1.	Unless there is a partnership agreement otherwise, a partnership must divide profits and losses

		a.	equally
		b.	based on individual investment
		c.	based on hours worked
		d.	based on the assets of the company

	2.	If John and Sandy have a partnership that has income of $32,000 and there is no partnership agreement, the division of income would be

		a.	$21,333 and $10,667 respectively
		b.	$16,000 each
		c.	$8,000 each
		d.	$32,000 each

	3.	If Casey and Dana have a partnership and decide to split profits and losses fractionally, with Casey getting 3/5 and Dana getting 2/5 and their profit at the end of the year is $25,000, Dana`s share of the profit will be

		a.	$20,000
		b.	$15,000
		c.	$10,000
		d.	$5,000

	4.	Susan and Andrea have invested $22,000 and $33,000 respectively. They are dividing their net income of $15,000 based on capital investment. Their respective share of net income will be

		a.	$6,000 and $9,000
		b.	$5,000 and $10,000
		c.	$3,000 and $12,000
		d.	$7,000 and $8,000

	5.	The division of $27,000 net income based on a 2:1 ratio would be

		a.	$20,000 and $7,000
		b.	$9,000 and $18,000
		c.	$13,500 and $13,500
		d.	$18,000 and $9,000

	6.	Casey and Dana have invested $12,100 and $9,900 in cash and other assets respectively and have agreed to divide their profits and losses based on their capital investments. Casey`s share is

		a.	45%
		b.	50%
		c.	55%
		d.	60%

	7.	If Susan and Andrea have a partnership agreement to share profits and losses 2/3 and 1/3 respectively, and they have a loss of $6,000, Susan`s share of the loss will be

		a.	$6,000
		b.	$4,000
		c.	$3,333.33
		d.	$2,000

	8.	A net loss in a partnership is a

		a.	debit to income summary and credit to capital accounts
		b.	debit to withdrawals account and credit to capital accounts
		c.	debit to capital accounts and credit to income summary
		d.	debit to income summary and credit to withdrawals account