Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Chapter 15, Problem 1P
To determine
Identify how is final allocation of business assets made to the partners if a
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If a partnership is liquidated, how is the final allocation of business assets made to the partners?
Multiple Choice
According to the initial investment made by each of the partners.
According to the profit and loss ratio.
Equally.
According to the final capital account balances.
Which financial statement of a partnership reflects the profitability of the business?
A. Statement of Financial Position
B. Statement of Cash Flows
C. Statement of Comprehensive Income
D. Statement of Changes in Equity
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.
Chapter 15 Solutions
Advanced Accounting
Ch. 15 - Prob. 1QCh. 15 - Prob. 2QCh. 15 - Prob. 3QCh. 15 - Prob. 4QCh. 15 - What is the purpose of a statement of liquidation?...Ch. 15 - Prob. 1PCh. 15 - Prob. 2PCh. 15 - Prob. 3PCh. 15 - Prob. 4PCh. 15 - A partnership is considering possible liquidation...
Ch. 15 - What is a predistribution plan? a. A list of the...Ch. 15 - Prob. 7PCh. 15 - Prob. 8PCh. 15 - Prob. 9PCh. 15 - Prob. 10PCh. 15 - Prob. 11PCh. 15 - Prob. 12PCh. 15 - Prob. 13PCh. 15 - Prob. 14PCh. 15 - Prob. 15PCh. 15 - Prob. 16PCh. 15 - Prob. 17PCh. 15 - Prob. 18PCh. 15 - Prob. 25PCh. 15 - Prob. 26PCh. 15 - March, April, and May have been in partnership for...Ch. 15 - Prob. 28PCh. 15 - Prob. 29P
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- When a partnership dissolves, the first step in the dissolution process is to ________. A. allocate the gain or loss on sale based on income sharing ratio B. pay off liabilities C. sell noncash assets D. divide the remaining cash among the partnersarrow_forwardWhen a partnership dissolves, the last step in the dissolution process is to ________. A. allocate the gain or loss on sale based on income sharing ratio B. pay off liabilities C. sell noncash assets D. divide the remaining cash among the partnersarrow_forwardA well written partnership agreement should include each of the following except ________. A. how to settle disputes B. the name of the partnership C. division of responsibilities D. Partners individual tax ratearrow_forward
- 1) The objective of preparation of income statement of partnership is: a.To show the ratio of capital of partners b.To show how net profit has been distributed among partners c.To show the income and expenses of the partnership firm d.To show the financial position of businessarrow_forwardThe withdrawal of capital by a partner from the business of partnership will be? a. Credited to partners' capital account b. Debited to profit and loss appropriation account c. Debited to partners' capital account d. Credited to profit and loss accountarrow_forwardWhich one of the following will be recorded under debit side of the partners' capital account? a. Partner's salary b. Partners' share of profit c. Interest on capital d. Interest on drawingsarrow_forward
- The objective of preparation of income statement of partnership is: a. To show how net profit has been distributed among partners b. To show the financial position of business c. To show the ratio of capital of partners d. To show the income and expenses of the partnership firmarrow_forwardWhich of the following will decrease the capital balance of a partner? A. Share in partnership profit. B. Receipt of share in revaluation surplus from a partnership property, plant and equipment. C. Drawing made by a partner. D. Advances made by partner to the partnership.arrow_forwardThe 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 partnerarrow_forward
- 4. How shall the profits and losses of the partnership be distributed among the partners? a. It should be divided equally. b. It should be divided according to their profits and losses sharing agreement. c. It should be divided proportionately in accordance with capital contribution. d. It should be divided according to what type of partner they are.arrow_forward4. The objective of preparation of income statement of partnership is: a.To show the income and expenses of the partnership firm b.To show the financial position of business c.To show how net profit has been distributed among partners d.To show the ratio of capital of partnersarrow_forwardWhat 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’ salariesarrow_forward
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