Self Assessment Quizzes

CHAPTER 28: Section 1 Financial Statements for a Partnership

	1.	Showing the division of net income or net loss on the income statement is

		a.	not required
		b.	required
		c.	never done in partnerships
		d.	always done in partnerships

	2.	In the Partners` Equity section of the balance sheet,

		a.	each partner`s withdrawal account is listed separately
		b.	all withdrawals are combined on one line
		c.	each partner`s capital account is listed separately
		d.	all capital accounts are combined on one line

	3.	In a partnership, owner`s equity is referred to as

		a.	owner`s equity
		b.	partners` equity
		c.	partners` capital
		d.	capital gains

	4.	How do you know when the books are balanced?

		a.	when equity equals liabilities
		b.	when assets equal liabilities
		c.	when income equals expenses
		d.	when assets equal liabilities plus owner's equity

	5.	The report that shows changes in each partner`s capital account is called

		a.	statement of changes in capital
		b.	statement of changes in partners` capital
		c.	statement of changes in owners` equity
		d.	statement of changes in partners` equity