1. _____________________________ refers to the ability of any partner to contract on behalf of the partnership.

2. Types of corporations is __________________________, ______________________, ___________________

3. List restriction retain earning ____________________, _____________________, ____________________

4. A partner invests into a partnership a building with an original cost of $90,000 and
accumulated depreciation of $40,000. This building has a $70,000 fair market value. As a
result of the investment, the partners capital account will be credited for
A) $70,000.
B) $50,000.
C) $90,000.
D) $120,000.

5. The basis for dividing partnership net income or net loss is referred to as any of the following
except the
A) income ratio.
B) income and loss ratio.
C) profit and loss ratio.
D) income sharing ratio.

6. Partners Don and Ron have agreed to share profits and losses in an 80:20 ratio respectively,
after Don is allowed a salary allowance of $80,000 and Ron is allowed a salary allowance of
$40,000. If the partnership had net income of $80,000 for 2010, Rons share of the income
would be
A) $40,000
B) $32,000
C) $48,000
D) $8,000

7. New Corp. issues 1,000 shares of $10 par value common stock at $14 per share. When the transaction
is recorded, credits are made to
A) Common Stock $10,000 and Paid-in Capital in Excess of Stated Value $4,000.
B) Common Stock $14,000.
C) Common Stock $10,000 and Paid-in Capital in Excess of Par Value $4,000.
D) Common Stock $10,000 and Retained Earnings $4,000.

8. The purchase of treasury stock

A) decreases common stock authorized.
B) decreases common stock issued.
C) decreases common stock outstanding.
D) has no effect on common stock outstanding.

9. The date a cash dividend becomes a binding legal obligation to a corporation is the
A) declaration date.
B) earnings date.
C) payment date.
D) record date.

10. Bonds that are secured by real estate are termed

A) mortgage bonds.
B) serial bonds.
C) debentures.
D) bearer bonds.