Assess the truth of this statement: One of the rules of debits and credits and account balances for a partnership is that when recording a transaction for a receipt of cash, the cash account is always debited for the amount of cash received. Group of answer choices This statement is true. This statement is false. There is not enough information to determine whether or not this statement is true. This statement is not applicable to accounting concepts.

Assess the truth of this statement: One of the rules of debits and credits and account balances for a partnership is that when recording a transaction for a receipt of cash, the cash account is always debited for the amount of cash received. Group of answer choices This statement is true. This statement is false. There is not enough information to determine whether or not this statement is true. This statement is not applicable to accounting concepts.

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter20: Corporations And Parterships

Section: Chapter Questions

Problem 2DQ

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Similar questions

Assess the truth of this statement: One of the rules of debits and credits and account balances for a partnership is that assets increase as debits. Group of answer choices This statement is true. This statement is false. There is not enough information to determine whether or not this statement is true. This statement is not applicable to accounting concepts.
Assess the truth of this statement: For a partnership, when a transaction is first recorded (put in a journal) every transaction affects at least two accounts, one account(s) will be debited and the other account(s) will be credited. Group of answer choices This statement is true. This statement is false. There is not enough information to determine whether or not this statement is true. This statement is not applicable to accounting concepts.
Assess the truth of this statement: The day-by-day transactions of a partnership are recorded in accordance with the double-entry accounting concepts and are recorded exactly like transactions in previous chapters except for those involving the owners' capital accounts and drawing accounts. Group of answer choices This statement is true. This statement is false. There is not enough information to determine whether or not this statement is true. This statement is not applicable to accounting concepts.
Which of the following is not a withdrawal that may be found in a partnership’s drawing account? Group of answer choices Removal of cash by a partner Payment of a partners’ speeding ticket by the partnership All of the choices may be found in a drawing account Removal of inventory by a partner
Is a true or false question: 1) During a partnership liquidation, if a partner has a debit capital balance in his or her capital account, he or she is responsible for contributing personal assets sufficient to eliminate the deficit. 2) The distribution of cash, as the final step in the process in winding up the affairs of a partnership, is distributed based on the income-sharing ratio.
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 False
A client of yours is considering investing in a partnership and has been analyzing the financial statements of the partnership. Their analysis has resulted in the following observations that that they are hoping you could address: 1. The balance sheet does not set forth the capital stock account at par value, which would define some level of minimum legal liability. 2. The balance sheet does not include any accrual for either state or federal income taxes even though the partnership reported pretax income. 3. In analyzing the income statement, your client noted that no salaries to partners were listed as an expense even though they know that existing partners received a salary from the partnership. 4. Interest on a partner’s capital balance is used as a means of allocating profits; however, no such interest appears on the income statement. Provide a response to each of your client’s observations regarding the partnership’s financial statements.
PLEASE ANSWER ALL WITH COMPLETE AND CORRECT WORKING THANKS 1 Record the inıtial distribution of available cash based on safe capital balance. 2 Record the payment of the partnership's liabilities. 3 Record the sale of noncash assets. 4 Record the entry to distribute safe cash payments to the partners. 5 Record the payment of all remaining partnership liabilities. 6 Record the payment of liquidation expenses. 7 Record the entry to distribute remaining cash held by the business to the partners.
The admission of a new partner effected through purchase of interest in the partnership is -recorded in the partnership books as a transfer within equity not recorded -recorded in the partnership books as a transfer from equity to liability -recorded in the partnership books as a debit to cash or other assets and ---credit to the incoming partner’s capital account An entity should prepare a statement of cash flows and should present it as a/an -Supplementary financial statement. -Supporting schedule for the amount appearing as cash and cash equivalent. -Note to financial statement. -Integral part of the entity’s basic financial statements. Investment property under the cost model would require ? -To be depreciated only -To be depreciated and tested for impairment annually -Measured at fairvalue at year end -Tested for impairment only
Assess the truth of this statement: For a partnership entity, partnership equity is composed of one capital account for each partner. Group of answer choices This statement is true. This statement is false. There is not enough information to determine whether or not this statement is true. This statement is not applicable to accounting concepts.
Besides drawing a written partnership agreement, it is legally possible to start a partnership on the basis of: a one partner extorting the other for capital. b) a verbal agreement. C) an assumption of interest of the potential partner. d) a loan obtained from a bank, and assuming the bank to be a partner in the business.
Question Bobby Donal and Bill Spader are discussing the liquidation of a partnership. Bobby maintains that all cash should be distributed to partners on the basis of their income ratios. Is he correct? Explain.