1. By definition, accrued revenue is unearned.
A) True
B) False
2. When journalizing the formation of a partnership, assets must be recorded at cost.
A) True
B) False
3. The net asset value of a partnership is equal to its revenue minus its expenses.
A) True
B) False
4. Partnerships pay no income tax.
A) True
B) False
5. Partners J, K, and L agree to share profit and loss in a 5:2:1 ratio respectively. If the partnership earned $4 million in net income, K would be paid $1 million.
A) True
B) False
6. Direct material and direct labor are conversion costs.
A) True
B) False