completion statements 195 partnership occurs whenever a partner withdraws or a new 4325026

COMPLETION STATEMENTS

              195.Partnership ______________ occurs whenever a partner withdraws or a new partner is admitted.

              196.A partnership characteristic which enables each partner to act on behalf of the partnership when engaging in partnership business is called ______________.

              197.A major disadvantage of the partnership form of organization is ______________, which makes each partner personally and individually liable for all partnership liabilities.

              198.The capital accounts indicate each partner's ______________ investment, while the partner's drawing accounts are ______________ owner's equity accounts.

              199.The ______________ ratio specifies the basis for sharing income and losses.

              200.An income ratio based on ______________ balances may be appropriate when the amount of funds invested in the partnership is critical to the partnership.

              201.A ______________ allowance or ______________ on partners' capital accounts are not expenses of the partnership when they are specified as the basis for sharing income and losses.

              202.In liquidating a partnership, it is necessary to convert ______________ into cash and to allocate any ______________ or ______________ to the partners based on their income ratios.

              203.A debit balance in a partner's capital account is called a _____________.

a204.A new partner may be admitted to the partnership by ______________ the interest of an existing partner, or by ______________ assets in the partnership.

a205.When a new partner's capital interest on the date of admittance is less than his or her investment in the firm, a ______________ results for the ______________ partner(s).

a206.If a bonus is given to a new partner, the old partners' capital accounts are decreased based on their ______________ ratio prior to the admission of the new partner.

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