Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

9. Current Liabilities

Types of Liabilities

Financial Accounting

9. Current Liabilities

Types of Liabilities

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Multiple Choice

Which of the following risks is faced by limited partners but not by general partners in a partnership?

Obligation to manage the day-to-day operations

Responsibility for all tax filings of the partnership

Loss of their investment in the partnership

Unlimited personal liability for partnership debts

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Verified step by step guidance

Step 1: Understand the difference between limited partners and general partners in a partnership. Limited partners typically invest in the partnership but do not participate in day-to-day management, whereas general partners manage the business and have unlimited liability for partnership debts.

Step 2: Analyze the risks faced by limited partners. Limited partners are only liable up to the amount of their investment in the partnership, meaning they risk losing their investment but are not personally liable for partnership debts beyond that.

Step 3: Compare the risks faced by general partners. General partners have unlimited personal liability for partnership debts, meaning their personal assets can be used to satisfy partnership obligations.

Step 4: Evaluate the options provided in the question. Limited partners do not have the obligation to manage day-to-day operations or responsibility for tax filings, as these are typically handled by general partners. The key risk unique to limited partners is the potential loss of their investment.

Step 5: Conclude that the correct answer is 'Loss of their investment in the partnership,' as this is a risk faced by limited partners but not by general partners.