4. 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 partners

4. 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 partners

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 2MC: Any assets invested by a particular partner in a partnership ________. A. do not become a...

See similar textbooks

Related questions

Q: The objective of preparing Income Statement of partnership is: a. To show drawings of partnership…

A: Income statement shows various amount of revenues and expenses.

Q: Which of the following transactions shall not affect the capital balance of a partner? A. Share of…

A: Event Impact on Partner's Capital Account A. Share of a partner in the partnership’s net loss.…

Q: :A partnership agreement .Includes only the company address and capital of each partner A .Must be…

A: A partnership is a form of joint venture backed by a common resource pool incorporated or…

Q: S1: Partnership profits and losses (including bonuses and revaluations) are allocated in accordance…

A: Profits from the partnership are divided and taxed according to a capital balance for each partner,…

Q: Which one of the following statement is correct on preparation of partnership final accounts? a.…

A: Which one of the following statement is correct on preparation of partnership final accounts . Net…

Q: S1: Partnership profits and losses (including bonuses and revaluations) are allocated in accordance…

A: "Since you have asked multiple question we will solve the first question for you. If you want any…

Q: alaries provided to partners are generally accounted for as:________ a. Part of the cost of…

A: A partnership means where two or more person comes together to do some common business activity and…

Q: Debited to partners' capital account

A: Correct Answer :- C Debited to partner capital.

Q: If a partnership is liquidated, how is the final allocation of business assets made to the partners?…

A: Partnership: This is the form of business entity that is formed by an agreement, owned and managed…

Q: 15. Which statement(s) is incorrect? * -Income summary account is closed directly to capital…

A: Answer: Concept: Partnership firm is the association of two or more person. They agree to share…

Q: . Write the word or group of words that identify each of the following statements.…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: S1: Partnership profits and losses (including bonuses and revaluations) are allocated in accordance…

A: Profit and Losses (including bonuses and revaluations) are allocated in accordance with partnership…

Q: Which of the following items is generally reported separately on a partnership return?

A: Step 1 A partnership is an arrangement by two or more individuals or parties to carry on the…

Q: How should losses in a partnership be divided between the capitalist partners? The ranking should…

A: Partnership is an agreement between persons, who invest their money, run business and then share…

Q: The distribution of cash, as the final process in winding up the affairs of a partnership, is based…

A: Winding up of affairs of partnership means shutting down of partnership business and all the assets…

Q: What is plurality with reference to partnership accounting? 2. Why is salary allowance to partners…

A: SOLUTION-1 PLURALITY OF CAPITAL AND DRAWING ACCOUNTS - 1-ACCOUNTING FOR PARTNERSHIP DIFFERS FROM…

Q: 1. One aspect that partnership differs from sole proprietorship is the plurality of capital and…

A: Partnership is a form of business in which two or more persons come together and operate a business.…

Q: 3- The objective of preparation of income statement of partnership is: a. To show the ratio of…

A: The income statement shows the net income earned by the partnership firm during the year. Net income…

Q: Write the word or group of words that identify each of the following statements.…

A: Given below is the required words:

Q: Write TRUE is the statement is TRUE and write FALSE if the statement is incorrect. 4. In the…

A: Partnership: This is the form of business entity which is formed by an agreement, owned and managed…

Q: Which one of the following is a gain to the partnership firm? a.Interest on drawings b.Interest on…

A: Solution: Interest on capital is expense or division of profit by partnership to partners. Interest…

Q: In case of admission of a partner, the first adjustment that need to be prepared is?? A. Bank…

A: As per the guidelines, only one question is allowed to be answered. Please upload different…

Q: S1: Partnership profits and losses (including bonuses and revaluations) are allocated in accordance…

A: Explanation and answer is given below,

Q: Which of the following will decrease the capital balance of a partner? A. Share in partnership…

A: Introduction: Partnership: Its an agreement between two or more partners for forming a business and…

Q: Blue and Grey are discussing how income and losses should be divided in a partnership they plan to…

A: Everything necessary to isolate an organization is for the accomplices to consent to the division.…

Q: S1: Partnership profits and losses (including bonuses and revaluations) are allocated in accordance…

A: Ans. Partnership Deed is prepared in partnership firms to decide on payment of profit and loss among…

Q: partnership

A: Correct Answer :- D Credited to partner capital Account.

Q: In investment in partnership, the payment made by new partner is A) Paid to the partnership В Paid…

A: SOLUTION- EXPLANATION- THE NEW PARTNER CAN PURCHASE ALL OR PART OF THE INTEREST OF A CURRENT…

Q: The purpose of preparation of partners' capital account is: a. To know the balance of capital of…

A: Answer: Concept: The partnership firm is the firm which has two or more partners. They prepare…

Q: 1. A partnership contract should always be prepared regardless of the amount or nature of the…

A: Since you have posted a question with multiple sub parts, we will answer only first three sub parts.…

Q: What is the proper disposition of a partnership loan that was made from a partner who has a debit…

A: As per the liquidation of a partnership firm, if there is a partner who has the debit capital…

Q: S1: An advance to partnership by a partner with the assumption of its repayment by the partnership…

A: Partnership is an agreement or association between two or more than two persons, in which they…

Q: 33) The withdrawal of capital by a partner from the business of partnership will be: a. Credited to…

A: Solution 33: Once capital is withdrawn from partnership, it will decrease capital account of…

Q: Direction: Write TRUE if the statement is true and FALSE if the statement is false. _1. A written…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: financial position

A: The objective of preparation of statement of financial position of partnership is Correct Answer :-…

Q: Write the word or group of words that identify each of the following statements.…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: The accounting treatment of capital invested in partnership business will be? a. Debited to cash…

A: Cash is increased. Partners capital is increased.

Q: Which one of the following is a gain to the partnership firm? a. Interest on drawings b.

A: Solution: "Interest on drawings" is a gain to the partnership firm.

Q: KINDLY ANSWER THE FIVE QUESTIONS. THANK YOU! 1.S1: Partnership profits and losses (including…

A: The questions are multiple choice questions. The topic is related to Partnership Accounting.

Q: Which of the following is an expense of a LLP? إختر أحد الخيارات: a. Interest on loans from partners…

A: The partnership is the agreement of conducting business jointly.

Q: 4. How shall the profits and losses of the partnership be distributed among the partners? a.…

A: Partnership is an agreement or association between two or more than two partners, in which they…

Q: Write the word or group of words that identify each of the following statements. 1. A…

A: Given below is the description of statements:

Q: When two sole proprietors form a partnership, one of them may retain his own set of books as the…

A: As per the guidelines, only one question is allowed to be solved. Please upload different questions…

Q: If A is the total capital of the partnership before the admission of a new partner, B is the total…

A: A partnership is the form of business that is carried by two partners and sharing the profit and…

Q: The book states "a partnership balance sheet is a document that is used to keep track of the…

A: Balance sheet: - Balance sheet refers to the financial statement of the company representing the…

Q: 1. Which is a deductible expense in determining the net income of the partnership? * -Interest on…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: Write the word or group of words that identify each of the following statements.…

A: Partnership:- It is a form of business where two or more people join together to share the profit or…

Q: The withdrawal of capital by a partner from the business of partnership will be: a. Debited to…

A: Given are the capital and current balances

Question

100%

4. 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 partners

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Preparation of income statement of partnership

VIEW

Analysis of options

VIEW

Conclusion

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

A 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 rate
A partnership ________. A. has one owner B. can issue stock C. pays taxes on partnership income D. can have more than one general partner
When a partnership is liquidated, any gains or losses realized by the sale of noncash assets are allocated to the partners based on their income sharing ratio. Why?
Any assets invested by a particular partner in a partnership ________. A. do not become a partnership asset but instead remain with the partner B. can be used only by the investing partner C. become the property of all the partners D. are the basis for all profit sharing
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 partners
Mutual agency is defined as: A. a mutual agreement B. the right of all partners to represent the companys normal business operations C. a synonym for partnership D. a partnership between two partnerships
Which of the following is a disadvantage of the partnership form of organization? A. limited life B. no taxation at the partnership level C. flexibility in business operations D. combining of financial resources