Limited Partnership and Managing Partner Quiz

De jure corporation = Corporation fully compliant with state incorporation requirements Special journal = Journal recording transactions of a specific type Interest on partners capital balance = Distribution of profits to partners Statement of change in partners capital = Shows changes in each partner's capital account

Partners capital account = Contains transactions between partners and partnership firm Income summary = Holding account for aggregating income accounts Beginning partners capital balance = Equals partner's initial contribution to the partnership Statement of change in partners capital = Shows changes in each partner's capital account

Documentation = Provides a financial record of each event or activity Contra Account = Carries a balance that offsets the normal account Adjunct Account = Increases the book value of a liability account Transaction = Business activity that directly affects financial status

<p>Transaction = Sales in cash and credit to customers Capitalist Partner = Partner who contributes money or property to the company De Jure Partnership = Has obtained a certificate of incorporation from the state Chart of Accounts = Organizes financial transactions and information</p> Signup and view all the answers

<p>Documentation = Ensures accuracy and completeness of transactions Contra Account = Reduces the paired account's value Adjunct Account = Valuation account that increases book value Capitalist Partner = Contributes to the capital of the company</p> Signup and view all the answers

<p>Transaction = Results in a direct effect on financial status and statements Adjunct Account = Adds credit balances to another account Capitalist Partner = Contributes money or property to the company's capital De Jure Partnership = Obtains a certificate of incorporation from the state</p> Signup and view all the answers

<p>Partner Salary = Debited with the amount of salary paid to the partner Average Capital Balance = Sum of the Company's capital at the end of each month during a fiscal year divided by 12 De Facto Partnership = Formed by mutual agreement without the need for a formal contract Dormant Partner = Entitled to a share of profits but takes no part in active business operations</p> Signup and view all the answers

<p>Mutual Agency = Legal relationship in a partnership where each partner has authorization powers Agreed Value = Fair market value of a Partner's non-cash Capital Contribution as agreed upon Nominal Account = Temporary account that is closed at the end of the accounting period Cash or Bank Account = Credited with the amount of salary paid to the partner</p> Signup and view all the answers

<p>Managing Partner = Responsible for guiding a business's strategic direction and managing day-to-day activities Accrued Expense = An expense recognized as incurred but not yet paid Accrued Income = Revenue that's been earned, but has yet to be received Real Account = Accounts that represent tangible assets and liabilities</p> Signup and view all the answers

<p>Limited Partnership = Business entity with at least one general partner and one limited partner Memorandum Entry = A short message entered into the general journal and general ledger account Managing Partner = Maintains positive client relationships, drives new business acquisitions, and implements organizational goals Real Account = Represents tangible and intangible assets</p> Signup and view all the answers

<p>Accrued Expense = Expense recognized as incurred but not yet paid Accrued Income = Revenue earned but not yet received Real Account = Accounts representing tangible and intangible assets Memorandum Entry = Short message entered into general journal and ledger account</p> Signup and view all the answers

<p>Limited Partnership = Business entity with one general partner and one limited partner Accrued Expense = Expense recognized but not paid yet Accrued Income = Revenue earned but not received yet Managing Partner = Guides strategic direction and manages daily activities</p> Signup and view all the answers

<p>Real Account = Accounts representing tangible assets and liabilities Memorandum Entry = Short message in general journal and ledger account Managing Partner = Responsible for strategic guidance and daily management Accrued Income = Revenue earned but not yet received</p> Signup and view all the answers

<p>Accrued Expense = Expense recognized as incurred but not yet paid Real Account = Accounts representing tangible assets and liabilities Limited Partnership = Business entity with one general partner and one limited partner Managing Partner = Guides business strategy and manages daily operations</p> Signup and view all the answers

<p>General partner = A person who forms a business with at least one other person and has personal liability for all debts Nominal account = Used to track financial transactions over a set period of time and closed at the end of each accounting year Fair market value = The price an asset would sell for on the open market under specific conditions Industrial partner = An individual, company, or organization that collaborates on a research project to provide expertise and resources</p> Signup and view all the answers

<p>Bonus distribution = Exceeding book value of capital investments results in a bonus for old partners Subsidiary ledger = A group of similar accounts with combined balances equal to a specific general ledger account Art of co-partnership = A contract among business partners to pool labor, capital, and share in profit, loss, and liability Capitalist industrial partner = A partner who contributes money or property to the capital of the company</p> Signup and view all the answers

<p>General partner = Legally binds the business and responsible for the actions of the business Nominal account = Keeps track of financial transactions over a set period of time and closes at the end of each accounting year Fair market value = Determines the price an asset would sell for on the open market under certain conditions Industrial partner = Works with a research project to provide expertise and resources</p> Signup and view all the answers