Recording of adjusting entries in partnership firm ensure that: a. The goodwill received by each partner b. The drawings allowed to each partner c. Cash basis principle is followed d. Both revenue recognition and matching principles are followed

Recording of adjusting entries in partnership firm ensure that: a. The goodwill received by each partner b. The drawings allowed to each partner c. Cash basis principle is followed d. Both revenue recognition and matching principles are followed

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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In case of admission of a partner, the first adjustment that need to be prepared is?? A. Bank account B. Profit and loss account adjustment C. The revaluation of assets D. Realization of income or loss S1: In a partnership, at least one partner is required to be a/an limited partner in order to ensure partnership creditors will be paid and protected S2: Unpaid liabilities should be included in computing for the total loss attributed to the partners. * A. Both statements are true B. s1 True; S2 False C. S2 True; S1 False D. Both statements are false S1: Joint Control is present if tow ore more parties have greater than 50% Control.S2: One Party has more than 50% in a joint arrangement * A. Both statements are false B. Both statements are true C. S2 True; S1 False D. s1 True; S2 False S1: If the total contributed capital of THE partnership is greater than the total agreed capital, it is possible that a goodwill be recognized or an undervaluation of asset occurred.S2: Noncash…
A partnership agreement should include A. Provision for division of assets on dissolution O B. Investment for each partner O c. Withdrawals to be allowed each partner D. All of these
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.
Salaries provided to partners are generally accounted for as:________ a. Part of the cost of revenues of the partnership b. An operating expense of the partnership c. A profit-sharing mechanism d. Permanent withdrawals of the partners
I need the answers from 1-5 please.
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
A well written partnership agreement should include each of the following except ________.A. how to settle disputesB. the name of the partnershipC. division of responsibilitiesD. Partner’s individual tax rate
The objective of preparing Income Statement of partnership is: a. To show the interest on capital of each partner O b. To show drawings of partnership firm O c. To show the net profit or loss of partnership firm O d. To show the capital of each partner The purpose of preparation of Profit and loss appropriation account is: O a. To know the balance of drawings of each partner O b. To know the balance of capital of each partner C. To know the share of profit or loss of each partner O d. To know the balance of goodwill of each partner
Need the continuation of answers for numbers 4-5.
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.
When accounts receivables are transferred into a partnership, at what amount should they be recorded? Include a definition of Accounts Receivable in your response.
"a partnership balance sheet is a document that is used to keep track of the relationship of the partnership to the partners and the partners to each other, both from a tax perspective and a economic perspective." What is meant by economic perspective (focus at point of formation)? Please provide examples with reference to the Regulations and/or other external support. (supported reference from textbook, web site, journal, etc)