Final answer:
Assets invested into the partnership and not given to the individual partners increase the total assets of the partnership. True. In a general sense, when assets are invested into a partnership and not distributed to individual partners, they are considered as part of the partnership's capital.
Step-by-step explanation:
True. Assets invested into the partnership and not given to the individual partners do increase the total assets of the partnership. For example, if two partners invest $10,000 and $5,000 respectively into a partnership, the total assets of the partnership would be $15,000. The treatment of assets in a partnership depends on the accounting method used. In a general sense, when assets are invested into a partnership and not distributed to individual partners, they are considered as part of the partnership's capital. This would generally increase the total capital or equity of the partnership, but it might not directly impact the total assets.
In accounting terms, a partnership's equity is composed of the partners' capital accounts, which include their initial investments and their share of profits or losses. The total assets of the partnership are separate from the total equity, as assets represent what the partnership owns and owes. It's important to note that accounting practices can vary, and it's always advisable to consult with a professional accountant or financial advisor for specific circumstances.