College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN: 9781305666160
Author: James A. Heintz, Robert W. Parry
Publisher: Cengage Learning
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Chapter 19, Problem 1MC
To determine
State the option which is a basis for sharing
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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.
The percentage of ownership of interest of the partners is always the same as their profit sharing ratio
True or False
How should losses in a partnership be divided between the capitalist partners? The ranking should be:
a. agreement-profit and loss -capital
b. capital-agreement-profit and loss ratio
c. agreement-profit ratio-capital
d. profit and loss-capital-agreement.
Chapter 19 Solutions
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Ch. 19 - Prob. 1TFCh. 19 - Prob. 2TFCh. 19 - Prob. 3TFCh. 19 - Prob. 4TFCh. 19 - Prob. 5TFCh. 19 - Prob. 1MCCh. 19 - Prob. 2MCCh. 19 - Prob. 3MCCh. 19 - Prob. 4MCCh. 19 - Prob. 5MC
Ch. 19 - Prob. 1CECh. 19 - Prob. 2CECh. 19 - Prob. 3CECh. 19 - Prob. 4CECh. 19 - Prob. 5CECh. 19 - Prob. 1RQCh. 19 - Prob. 2RQCh. 19 - Prob. 3RQCh. 19 - Prob. 4RQCh. 19 - Prob. 5RQCh. 19 - Prob. 6RQCh. 19 - Prob. 7RQCh. 19 - Prob. 8RQCh. 19 - Prob. 9RQCh. 19 - Prob. 1SEACh. 19 - Prob. 2SEACh. 19 - Prob. 3SEACh. 19 - Prob. 4SEACh. 19 - ENTRIES: PARTNERSHIP LIQUIDATION On liquidation of...Ch. 19 - Prob. 6SPACh. 19 - Prob. 7SPACh. 19 - Prob. 8SPACh. 19 - Prob. 9SPACh. 19 - STATEMENT OF PARTNER SHIP LIQUIDATION WITH LOSS...Ch. 19 - Prob. 1SEBCh. 19 - Prob. 2SEBCh. 19 - Prob. 3SEBCh. 19 - Prob. 4SEBCh. 19 - Prob. 5SEBCh. 19 - Prob. 6SPBCh. 19 - Prob. 7SPBCh. 19 - ENTRIES FOR DISSOLUTION OF PARTNERSHIP Cummings...Ch. 19 - Prob. 9SPBCh. 19 - STATEMENT OF PARTNER SHIP LIQUIDATION WITH LOSS...Ch. 19 - Prob. 1MYWCh. 19 - Prob. 1ECCh. 19 - Prob. 1MPCh. 19 - Prob. 1CPCh. 19 - Prob. 1COP
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- 10. In participation/partnership based contracts, ______ is always subject to the ratio of investment while _________ distribution is based on pre-agreed ratio. a. Profit, Profit b. Loss, Profit c. Profit, Loss d. Loss, Lossarrow_forwardWhat provisions in a partnership agreement can be used to establish an equitable allocation of income among all partners?arrow_forward8 Which of the following ratio helps the partners to determine the amount of compensation to be paid by the new partner to the old partners for the share of profit surrendered? a. Sacrificing Ratio b. New Profit Sharing Ratio c. Gaining Ratio d. None of the options are correctarrow_forward
- Show allocation of profit/loss among partners.arrow_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_forwarda. Statement I is True, and Statement II is True. b. Statement I is True, and Statement II is False. c. Statement I is False, and Statement II is True. d. Statement I is False, and Statement II is False.arrow_forward
- Plz solvearrow_forwardSalaries 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 partnersarrow_forwardIn the absence of agreement as to distribution of profit, how shall the partnership profit be distributed to the partners? A. The industrial partner shall receive a share equivalent to the least share of a capitalist partner while the capitalist partners shall share based on capital contribution ratio. B. The industrial partner shall receive a just and equitable share and the remainder shall be distributed to the capitalist partners on the basis of capital contribution ratio. C. The profit shall be distributed on the basis of loss contribution ratio which may have been agreed upon by the partners. D. The profit shall be distributed equally to all partners including the industrial partner.arrow_forward
- 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 Falsearrow_forwardA partnership agreement specifies salaries to partners, interest on partners' capital, and the remaining profits or losses shared in a fixed ratio. When the partnership profit is not sufficient to cover both salaries and interest, only interest is allocated to the partners. the entire profit is shared in a fixed ratio. only salaries are allocated to the partners. both salaries and interest are allocated to the partners.arrow_forwardDoes each partner have to contribute an equal amount of assets in order to split profit and losses?arrow_forward
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