1) Merchandise invested by an entity under a joint operation agreement should include an entry of a)Debit to Joint Operation under the books of the Joint Operators other than the party who invested b)Credit to merchandise inventory of the Joint Operator who contributed merchandise c)Credit to merchandise Inventory of all the Joint Operators d)Credit to Joint Operation under the books of the party investing the merchandise 2) The interest of the retiring or withdrawing partner is usually measured by his capital balance before his retirement or withdrawal adjusted by the following adjustments except a)profit or loss after the date of the partner’s withdrawal or retirement b)changes in the valuation of all assets and liabilities c)errors in net income in prior years d)profit or loss from the operation from the last closing date of the date of his retirement or withdrawal 3)In case of admission of a partner, the first adjustment that need to be prepared is a) The revaluation of assets b) Bank account c) Realization of income or loss d) Profit and loss account adjustment
1) Merchandise invested by an entity under a joint operation agreement should include an entry of a)Debit to Joint Operation under the books of the Joint Operators other than the party who invested b)Credit to merchandise inventory of the Joint Operator who contributed merchandise c)Credit to merchandise Inventory of all the Joint Operators d)Credit to Joint Operation under the books of the party investing the merchandise 2) The interest of the retiring or withdrawing partner is usually measured by his capital balance before his retirement or withdrawal adjusted by the following adjustments except a)profit or loss after the date of the partner’s withdrawal or retirement b)changes in the valuation of all assets and liabilities c)errors in net income in prior years d)profit or loss from the operation from the last closing date of the date of his retirement or withdrawal 3)In case of admission of a partner, the first adjustment that need to be prepared is a) The revaluation of assets b) Bank account c) Realization of income or loss d) Profit and loss account adjustment
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1) Merchandise invested by an entity under a joint operation agreement should include an entry of
a)Debit to Joint Operation under the books of the Joint Operators other than the party who invested
b)Credit to merchandise inventory of the Joint Operator who contributed merchandise
c)Credit to merchandise Inventory of all the Joint Operators
d)Credit to Joint Operation under the books of the party investing the merchandise
2) The interest of the retiring or withdrawing partner is usually measured by his capital balance before his retirement or withdrawal adjusted by the following adjustments except
a)profit or loss after the date of the partner’s withdrawal or retirement
b)changes in the valuation of all assets and liabilities
c)errors in net income in prior years
d)profit or loss from the operation from the last closing date of the date of his retirement or withdrawal
3)In case of admission of a partner, the first adjustment that need to be prepared is
a) The revaluation of assets
b) Bank account
c) Realization of income or loss
d) Profit and loss account adjustment
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