Accounting 2 test 1

Which of the following is an advantage of a partnership when compared to a corporation?
The partnership is relatively inexpensive to organize
mutual agency
The characteristic of a partnership that gives the authority to any partner to legally bind the partnership and all other partners to business contracts is called
fair market value at the time of the contribution
When a partnership is formed, assets contributed by the partners should be recorded on the partnership books at their
authorized stock
The state charter allows a corporation to issue only a certain number of shares of each class of stock. This amount of stock is called
retained earnings
The term deficit is used to refer to a debit balance in which of the following accounts of a corporation?
the date of declaration
The liability for a dividend is recorded on which of the following dates?