Accounting for Partnerships FLASHCARDS

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Accounting for PartnershipsFLASHCARDS
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Distributive share
Distributive share
The amount of net income or net loss allocated to
each partner
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Mutual agency
Mutual agency
The characteristic of a partnership by which each
partner is empowered to act as an agent for the
partnership, binding the firm by his or her acts
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Unlimited liability
Unlimited liability
The implication that a creditor can look to all
partners personal assets as well as the assets
of the partnership for payment of the firms
debts
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Liquidation
Liquidation
Termination of a business by distributing all
assets and discontinuing the business
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Limited partner
Limited partner
A member of a partnership whose liability is
limited to his or her investment in the
partnership
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For additional reinforcement of accounting
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