Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Question
Chapter 14, Problem 2P
To determine
Identify the correct statement for partnership accounting differs from corporate accounting.
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Students have asked these similar questions
How does partnership accounting differ from corporate accounting?
A. The matching principle is not considered appropriate for partnership accounting
B. Partnerships report all assets at fair value as of the latest balance sheet data
C. Revenues are recognized at a different time by a partnership that is appropriate for a corporation
D. Individual capital accounts replace the contributed capital and retained earnings balances found in corporate accounting
How does partnership accounting differ from corporate accounting?
Multiple Choice
Revenues are recognized at a different time by a partnership than is appropriate for a corporation.
Individual capital accounts replace the contributed capital and retained earnings balances found in corporate accounting.
The matching principle is not considered appropriate for partnership accounting.
Partnerships report all assets
fair value as of the latest balance sheet date.
The CORRECT statement concerning partnerships is:
O A partnership represents an accounting entity for financial reporting
purposes.
Each partner's share of profit is taxable to the partnership.
The personal assets of a partner are included in the partnership accounting
records.
O Accountants or lawyers may not form partnerships.
Chapter 14 Solutions
Advanced Accounting
Ch. 14 - Prob. 1QCh. 14 - Prob. 2QCh. 14 - Prob. 3QCh. 14 - Prob. 4QCh. 14 - Prob. 5QCh. 14 - Prob. 6QCh. 14 - Prob. 7QCh. 14 - Prob. 8QCh. 14 - Prob. 9QCh. 14 - Prob. 10Q
Ch. 14 - Prob. 11QCh. 14 - Prob. 12QCh. 14 - What is a partnership dissolution? Does...Ch. 14 - Prob. 14QCh. 14 - Prob. 15QCh. 14 - Prob. 16QCh. 14 - Prob. 17QCh. 14 - When a partner withdraws from a partnership, why...Ch. 14 - Prob. 1PCh. 14 - Prob. 2PCh. 14 - Prob. 3PCh. 14 - Prob. 4PCh. 14 - Prob. 5PCh. 14 - Prob. 6PCh. 14 - Prob. 7PCh. 14 - Prob. 8PCh. 14 - Prob. 9PCh. 14 - Prob. 10PCh. 14 - Prob. 11PCh. 14 - Prob. 12PCh. 14 - Prob. 13PCh. 14 - Prob. 14PCh. 14 - Prob. 15PCh. 14 - Prob. 16PCh. 14 - Prob. 17PCh. 14 - Prob. 18PCh. 14 - Prob. 19P
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- Which of the following is a reason to use a partnership as the legal form of a business? A. Partnerships avoid the difficulty of raising capital. B. Partnerships avoid the issue of mutual agency. C. Partnerships avoid the issue of double-taxation faced by corporations. D. Partnerships avoid the issue of unlimited liability.arrow_forwardA partnership is treated as a separate entity with respect to a.the paying of income taxes. b.its ability to exist independent of its owners. c.passing it on to heirs. d.bankruptcy. e.having its own assets and liabilities.arrow_forwardWhich statement is incorrect? * -The accrual basis of accounting is used to account for partnership operation. -When expenses exceed revenues, the income summary account will be debited when closing it to the partners’ capital accounts. -In the absence of any agreement, profits and losses shall be divided based on original capital -Salaries and interest on capital given to partners are not considered as partnership expenses but rather as only a means of distributing partnership net income. -none of the above Which statement(s) is incorrect? * -Income summary account is closed directly to capital account if the intention of the partners is to make profit or loss part of permanent capital. -Beginning capital refers to the initial investment of a partner upon formation of the partnership. -A capitalist-industrial partner shares on the partnership profits as well as on partnership losses. -The salary to partners and/or…arrow_forward
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