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Problem 1: A large cash withdrawal by Jacob is viewed by the other partners as a permanent reduction of his equity is recorded with a debit to as
a. Jacob, Capital
b. Revaluation Surplus
c. Loan Receivable from Jacob
d. Jacob, Drawing
Problem 2: Which of the following is not a characteristic of a partnership?
a. Unlimited Life
b. Co-ownership
c. Mutual Agency
d. Can be based on Contract
Problem 3: All of the following are applicable to both general and limited partnerships, except
a. Both have at least one general partner
b. All partners have the right to participate in the sharing of the profits of the business
c. All partners are liable for all the debts of the firm
d. Both can be easily dissolved
Financial Statement Analysis and Preparation
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Computation of Free Cash Flow
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