Account: Generally Accepted Accounting Principles and Long Term Liabilities

1084 Words Dec 23rd, 2011 5 Pages
Chapter 12 :
1/ As part of the initial investment , a partner contributes office equipment that had cost $20,000 and on which accumulated depreciation of $ 12500 had been recorded . If the partners agree on a valuation of $ 9000 for the equipment , what amount should be debited to the office equipment account? a/ 7500 c/ 12500 b/ 9000 d/ 20000
2/ Chip and Dale agree to form a partnership. Chip is to contribute $50000 in assets and to devote one half time to the partnership. Dale is to contribute 20000 and to devote full time to the partnership. How will Chip and Dale share in the division of net income or net loss? a/ 5:2 c/ 1:1 b/ 1:2
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a/ direct method b/ purchase method c/ reciprocal method d/ indirect method
5/ the net income reported on the income statements for the year was 55000 and depreciation of fixed assets for the year was 22000 . The balances of the current assets and current liability accounts at the beginning and end of the year are shown at the top of the following page? / 740
Chapter 17:
1/ what type of analysis is indicated by the following ? a/ vertical analysis b/ horizontal analysis c/ profitability analysis d/ contribution margin analysis

2/ which of the following measures indicates the ability of a firm to pay its current liabilities ?