no need to explain. What is a cash priority program? a. A guideline for the cash distributions made to partners during a liquidation b. A list of the rules to be performed during a partnership dissolution c. A list of the transactions that will transpire in the reorganization of a partnership d. None of the above

no need to explain. What is a cash priority program? a. A guideline for the cash distributions made to partners during a liquidation b. A list of the rules to be performed during a partnership dissolution c. A list of the transactions that will transpire in the reorganization of a partnership d. None of the above

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 8MC: A well written partnership agreement should include each of the following except ________. A. how to...

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How are safe capital balances computed when preliminary distributions of cash are to be made in a partnership liquidation?
In a partnership liquidation, the final cash payment to the partners should be made in accordance with the*a. balance of partners' capital accounts.b. partner's profit and loss sharing ratio.c. ratio of the capital contributions by partners.d. safe payment computations.
In partnership liquidation, the final cash distribution to the partners should be made in accordance with the: a. Partners’ profit and loss sharing ratio b. Balances of the partner’s capital account c. Ratio of the capital contributions by the partners d. Ratio of capital contributions less withdrawals by the partners
In partnership liquidation the first cash distribution to the partner should be made in accordance with the Select one: a. Ratio of the capital contribution by partners b. Balances of partners' capital accounts c. Partners profit &loss ratios d. Safe payment schedule
Is a true or false question: 1) During a partnership liquidation, if a partner has a debit capital balance in his or her capital account, he or she is responsible for contributing personal assets sufficient to eliminate the deficit. 2) The distribution of cash, as the final step in the process in winding up the affairs of a partnership, is distributed based on the income-sharing ratio.
In accounting for the lump-sum liquidation of a partnership, cash payments to partners after all non-partner creditors' claims have been satisfied, but before the final cash distribution should be according toa. the final balances in partner capital accounts.b. the partners' relative share of the gain or loss on liquidation.c. the partners' relative profit and loss sharing ratio.d. safe payment computations.
What is the purpose of a partnership appropriation account? A to avoid disagreements between the partners B to calculate residual profits for division between partners C to calculate the profit sharing ratio D to determine the amount of partners’ salaries
One of the final steps in terminating a partnership is the distribution of remaining assets to the partners after all obligations have been met. What is the basis for distributing any remaining assets/cash among the partners? How would loans from partners affect the distribution of partnership assets?
Statement I: In the preparation of cash priority program, the partner who is most prone to losses is deemed to be the first priority in cash distribution. Statement II: In the case of partnership liquidation, when the partners’ interests are already in accordance with the P/L ratio, succeeding payments to the partners must be done in accordance with P/L. Group of answer choices
Assess the truth of this statement: One of the rules of debits and credits and account balances for a partnership is that assets increase as debits. Group of answer choices This statement is true. This statement is false. There is not enough information to determine whether or not this statement is true. This statement is not applicable to accounting concepts.
The distribution of cash, as the final process in winding up the affairs of a partnership, is based on the income-sharing ratio. Group of answer choices True False
QUESTION 2 Which one of the following alternatives is correct? A. To ensure that compliance is followed, the financial statements of partnerships must be prepared according to IFRS. B. When recording the valuation adjustments, if the value of a liability is decreased, the valuation account credited with the amount of a decrease. C. The selling price of the partnership business is determined by the value of its assets. D. An existing goodwill account balance is transferred to the partners' capital accounts on admission of a new partner. E. The fair value of the assets of a partnership is equal to the total equity of a partnership.