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