25 Which of the following statements is true with regard to a withdrawing partner? Group of answer choices a. A bonus may be paid to the retiring partner b. Recognizing a bonus is not appropriate when a partner retires c. A bonus must be paid to the retiring partner d. A bonus must be paid to the retiring partner or to the remaining partners

25 Which of the following statements is true with regard to a withdrawing partner? Group of answer choices a. A bonus may be paid to the retiring partner b. Recognizing a bonus is not appropriate when a partner retires c. A bonus must be paid to the retiring partner d. A bonus must be paid to the retiring partner or to the remaining partners

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

For no. 15-17, can you help to check if my answers are correct? If it's not visible, my answers are C, B, and D. If it's wrong, please provide a short explanation why. If it's correct, no need to explain. Thank you so much in advance?
Under the default rules of the ULPA, a limited partner who wishes to withdraw from a limited partnership has: Group of answer choices neither the power nor the right to withdraw. the power but not the right to withdraw. the right but not the power to withdraw. both the power and the right to withdraw.
TRUE OR FALSE
If a partner who retired from the partnership receives less than the capital balance before retirement which also resulted to decrease in the capital balance of remaining partners, which is correct? Revaluation surplus is recognized before the retirement. The retiring partner gives bonus to the remaining partner. An impairment loss is recognized before retirement. The retiring partner receives bonus form remaining partner. Clear selection
A Moving to another question will save this response. Question 1 When a new partner is added to an existing partnership, the underlying business operations must close and reopen. O True False A Moving to another question will save this response.
TRUE OR FALSE
The profit and loss from revaluation on retirement of partner is shared by? O a. All the partners O b. The remaining partners O c. None of these are correct. O d. Only retiring partner
If a partner who retired from the partnership receives less than the capital balance before retirement which also resulted to decrease in the capital balance of remaining partners, which is correct? a. The retiring partner receives bonus from remaining partners b. An impairment loss is recognized before the retirement c. Revaluation surplus is recognized before the retirement d. The retiring partner gives bonus to the remaining partner
27 Statement I: When a partner sells an interest to a new partner at an amount that exceeds the carrying amount of the equity sold, the difference is recognized as a personal gain of the selling partner from the transaction. Statement II: The amount of net assets invested of a new partner into an existing partnership is not always equal to the amount credited to his capital account. O True, true Faise, false Fase, true O True false
3. Suppose A, B, and C are not really partners, but A told X that A, B, and C are partners. X, believing the representation made by A and consented to by B, extend ed credit to A. What type of partnership was described? Explain.
QUESTION 1 Which one of the following alternatives is correct? A. The retirement of a partner from a partnership does not require the calculation of a new profit-sharing ratio but a simple reallocation of a retired partner's share. B. From the legal perspective, the activities of a dissolved and a subsequent new partnership are not separately accounted for and reported on. C. Since partnerships are not governed by a law requiring that IFRS be applied, it is not possible to introduce a standardised accounting procedure according to which changes in the ownership structure of partnerships ought to be recorded. D. Since a partnership is a legal entity, the ownership of a partnership is vested in the partners, and not in the partnership. E. When a change in the ownership structure of a partnership occurs, a new partnership agreement is entered into by the new partners which causes the existing partnership to continue with its business operations without any interruptions.
The admission of a new partner under the bonus method will result in a bonus to which option? a. the old partners only. b. the new partner only. c either the new partner or the old partners, but not both d. none of the above.