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Questions and Answers
In an Limited Liability Partnership (LLP), each partner is liable for partnership debts only to the extent of:
In an Limited Liability Partnership (LLP), each partner is liable for partnership debts only to the extent of:
- Their investment in the partnership plus their share of the liabilities (correct)
- Their total wealth
- Their annual income
- Their personal assets
Which type of accounting records revenue when it is earned, regardless of when payment is received?
Which type of accounting records revenue when it is earned, regardless of when payment is received?
- Cash accounting
- Prepaid accounting
- Accrual accounting (correct)
- Deferred accounting
What type of entry is a record of an event that has a financial impact on the business and can be reliably measured?
What type of entry is a record of an event that has a financial impact on the business and can be reliably measured?
- Journal entry (correct)
- Closing entry
- Trial entry
- Adjusting entry
What would the purchase of office equipment for cash do to both an asset and a liability account?
What would the purchase of office equipment for cash do to both an asset and a liability account?
Under the adjusting principle, when should a business record revenue?
Under the adjusting principle, when should a business record revenue?
Are liabilities and revenues increased by debits or credits?
Are liabilities and revenues increased by debits or credits?
Which financial statement provides information about a company’s financial position at a specific point in time?
Which financial statement provides information about a company’s financial position at a specific point in time?
What does the term 'retained earnings' represent in accounting?
What does the term 'retained earnings' represent in accounting?
In a Limited Liability Partnership (LLP), what is the extent of each partner's liability for partnership debts?
In a Limited Liability Partnership (LLP), what is the extent of each partner's liability for partnership debts?
Which account is not included in the business records of a proprietorship?
Which account is not included in the business records of a proprietorship?
In accounting, which of the following is decreased by credits?
In accounting, which of the following is decreased by credits?
What principle dictates recording revenue when it is earned, regardless of payment timing?
What principle dictates recording revenue when it is earned, regardless of payment timing?
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