University of Mindanao - Main Campus (Bolton Street, Davao City)

ACCTG 2

1. Two or more persons bind themselves to contribute money, property, o industry to a
common fund, with the intention of dividing the profit among themselves.
a. Corporation c. Sole Proprietorship
b. Partnership d. Cooperative
2. Partnerships that are generally associated with the practice of law, public accounting,
medicine and other professions are called
a. Joint venture c. General Professional partnership
b. Cooperative d. Private partnership
3. Which characteristics of a partnership that any partner can bind the other partners to a
contract if he is acting within his express or implied authority?
a. Mutual Contribution c. Co-ownership of Contributed Assets
b. Mutual Agency d. Partner’s Equity account
4. A partnership which has complied with all the legal requirements for its
establishment
a. De jure partnership c. Universal partnership
b. De facto partnership d. Limited partnership
5. A partner who does not take active part in the business of the partnership and is not
known as a partner.
a. Silent partner c. Dormant partner
b. Secret partner d. Nominal partner
6. Which of the following is not a characteristic of partnerships?
a. Mutual agency c. Limited life
b. Voluntary association d. Limited liability
7. Non-cash assets invested into a partnership are recorded at
a. Their fair market value
b. Their original cost
c. Their carrying value
d. Zero
8. On July 1, Mar and Bebs formed a partnership, agreeing to share profits and losses in
the ratio of 4:6 respectively. Mar contributed a parcel of land that cost P25,000. Bebs
contributed P50,000 cash. The land was sold for P50,000 on July 1, three hours after
formation of the partnership. How much should be recorded in Mar’s capital account on
formation of the partnership?
a. 50,000 b. 20,000 c. 25,000 d. 10,000
9. Ms. Nap and Mr. Polis started a partnership. Nap contributed a building that she
purchased 10 years ago for 100,000. The accumulated depreciation on the building on the