55) Farrell and Jimmy enter into a partnership agreement on May 1, 2018. Farrell contributes $30,000 and Jimmy contributes $140,000 as their capital contributions. They decide to share profits and losses in the ratio of their respective capital account balances. The net income for the year ended December 31, 2018 is $40,000. Which of the following amounts should be credited to Jimmy's capital account? (Do not round any intermediate calculations. Round your final answers to the nearest dollar.) A) $70,000 B) $40,000 C) $32,941 D) $7059 MIDTERM EXAM ACC 2011 56) An intangible asset is an asset with no physical form that is valuable because of the special rights it carries. 57) Regarding impairment of intangible assets, which of the following statements is incorrect? A) Impairment occurs when the fair value of an intangible asset is less than the book value. B) Intangible assets are impaired when there has been a permanent decline in the value of the asset. C) Intangible assets with an indefinite life are tested for impairment annually. D) If any impairment occurs, the company records a loss in the period in which the intangible asset was acquired. 58) A trademark represents the exclusive right to reproduce and sell a book, musical composition, film, other work of art, or intellectual property. 59) According to Generally Accepted Accounting Principles, if the fair value of goodwill decreases below its book value, an impairment loss must be recorded. 60) Which of the following statements about franchises is correct? A) Franchises are privileges granted by a government to use public property in performing services. B) The acquisition cost of a franchise is always amortized over its legal life. C) Franchises are privileges granted by a business to sell goods or services under specified conditions. D) The acquisition cost of a franchise cannot be amortized because its useful life cannot be determined.
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
55) Farrell and Jimmy enter into a
56) An intangible asset is an asset with no physical form that is valuable because of the special rights it carries.
57) Regarding impairment of intangible assets, which of the following statements is incorrect?
A) Impairment occurs when the fair value of an intangible asset is less than the book value.
B) Intangible assets are impaired when there has been a permanent decline in the value of the asset.
C) Intangible assets with an indefinite life are tested for impairment annually.
D) If any impairment occurs, the company records a loss in the period in which the intangible asset was acquired.
58) A trademark represents the exclusive right to reproduce and sell a book, musical composition, film, other work of art, or intellectual property.
59) According to Generally Accepted Accounting Principles, if the fair value of
60) Which of the following statements about franchises is correct? A) Franchises are privileges granted by a government to use public property in performing services. B) The acquisition cost of a franchise is always amortized over its legal life. C) Franchises are privileges granted by a business to sell goods or services under specified conditions. D) The acquisition cost of a franchise cannot be amortized because its useful life cannot be determined.
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