f it is required to maintain fixed capitals, then the partners' shares of profits must be Debited to capital accounts Credited to capital accounts

Q: What is the capital called that is contributed to the corporation by the stockholders and others?…

A: Stockholders are the owners, who invest in the company in the form of cash or kind. They can be…

Q: A limited company can issue shares to investors who then become shareholders in that company. This…

A: A shareholder is any individual, corporation, or organization who holds stock in a firm. A…

Q: One of the primary reasons for investing in equity securities includes a. Receiving dividend…

A: Investments refers to the process of using the currently held excess cash to earn profitable returns…

Q: If the employee has the choice as to whether the settlement is in cash or by issuance of equity…

A: The question is related to IFRS 2 Share based payment.

Q: Under IFRS, the amount of capital received in excess of par value would be credited to: a.…

A:

Q: Types of Capital (2nd attempt) Please describe the following types of capital and tell me if they…

A: The definition of the given capital is as below:Common stock: These are the ordinary shares that a…

Q: Common stockholders; a. have the first claim on the income and assets of the firm b. contribute…

A: Share capital is the important source of finance that is being used by the company to fulfill its…

Q: When a small, share capital dividend is declared, Retained Earnings is debited for the a. par value…

A: when small share capital dividend is declared, it is recorded at FV of stock as at the declaration…

Q: hen an investor uses the cost method to account for investments in subsidiary, cash dividends…

A: Solution Concept Cost method to account for investments in subsidiary           This method is used…

Q: 2) Capital raising involves a firm’s decision in ____________________. Group of answer choices…

A: A firm needs long term finance  like common stock, preferred stock, long term debt etc to meet its…

Q: How does a proportionate current distribution of cash from a partnership to a partner compare with…

A: SOLUTION- A cash dividend is the distribution of funds or money paid to stockholders generally as…

Q: O Preferred equity is a separate component of WACC. O There is a tax shield on the equity dividends…

A: There is debt used in the capital structure of company debt have advantages of interest tax sheild…

Q: Which of the following is most likely true regarding payment of dividends? a. Dividends may be paid…

A: The question is a multiple choice question. Required to identify the most likely true in regarding…

Q: All of the following statements are correct, except, a. An investor may have significant influence…

A: The correct answer is given in the following steps for your reference in the following steps.

Q: Dividends are recognized in profit or loss only when: Group of answer choices A. The amount of the…

A: Dividends are recognized in profit by the company received it when the dividends are received.

Q: Consider the following statements. I. In applying the Equity Method of accounting for investments in…

A: Equity method: This method is an accounting technique that a company uses to record the profits that…

Q: 1. What is an intercorporate share investments? a) Significance Influence b) Financial Assets vs…

A: Investments are the resources that the entity or individual has when capital is allocated for a…

Q: he firm's capital structure refers to: Select one: a. the amount of dividends a firm pays b. None of…

A: Answer: The firm capital structure is the structure which shows the invested capital in the…

Q: a. If legal capital is assumed to include all paid-in capital, the most the firm can pay in cash…

A: Maximum total dividend payable to shareholder is equal t o retained earning balance. Maximum…

Q: Equity is the Amount of a company's capital is owned by the shareholders. In sole proprietorship and…

A: solution concept In a balance sheet of company There is asset , liabilities and equity Equity means…

Q: The pre-emptive right of common shareholders is defined as the right to. to receive cash dividends…

A: Common stockholders are a group of stockholders who have voting rights and have the voting rights…

Q: Which of the following can be used to offset a passive loss? a.Dividend income from stock held as an…

A: Solution- Passive losses are offset by only passive incomes not income from stock,bonds,dividend.…

Q: The cost of capital is typically HIGHEST for:   a。Subordinated debt. b。Preference shares.c。…

A: Cost Accounting includes procedures such as gathering, recording, analyzing, summarizing,…

Q: Explain the accounting for share capital issued for non-cash consideration.

A: The share issue is the most common way in order to arrange funds for the business of the company.…

Q: The two methods by which the capital accounts of partners can be maintained are: Fluctuating Capital…

A: The partners of a firm maintain accounts for the record of their capitals, salaries, interests and…

Q: f the employee has the choice as to whether the settlement is in cash or by issuance of equity…

A: A Compound Financial Instrument is an instrument that has the characteristic of both an equity and…

Q: he effect of a share dividend is to transfer assets to stockholders assets to contributed capital…

A: We know that dividend is the distribution of profits of the entity in the form of new shares to the…

Q: What is the definition of Working Capital? Options: A) They are the resources contributed by the…

A: Answer -  Working Capital is calculated as current assets minus current liabilities and it is…

Q: When an investor uses the equity method to account for investments in common stock, cash dividend…

A: 1. Equity method - Under an Equity method of accounting following entries and changes are made every…

Q: Can a Joint venture use equity method of accounting? how bout the share of net income of each…

A: A joint venture refers to the business combination strategy wherein two or more businesses join…

Q: If share-based payment transaction provides that the employees have the right to choose the…

A: Ans. A compound financial instrument is one in which where both equity and liability component are…

Q: The portion of the Private Equity timeline where capital flows to the LP's is called the

A: Private equity is the equity which has been invested by the investors in the business or company.…

Q: 1. What's the difference between paid-up capital and paid-in capital, please explain detail clearly,…

A: QUESTION: 1   Paid-in capital is the amount of capital "paid in" by way of investors at some stage…

Q: Generally speaking, what events or activities would normally result in a partner’s capital account…

A: Partners’ Capital has a credit balance in normal. So, any credit will increase the partners’ capital…

Q: If the company decides to declare a share dividend instead of cash, explain the effects on the…

A: A company declares share dividend instead of cash dividend if it has low or insufficient cash…

Q: It entitles an employee to receive cash which is equal to the excess of market value of the entity's…

A: It entitles an employee to receive cash which is equal to the excess of market value of the…

Q: hat are dividends in arrears? How do they affect the allocation of dividends to preference and…

A: Dividends in arrears means that dividends have accrued but have not yet been paid due to inadequate…

Q: If the issuing company has only one class of share capital, a transfer from retained earnings to…

A: , a transfer from retained earnings to contributed capital equal to the market value of the shares…

Q: According to IAS 28, Investments in Associates and Joint Ventures, an investment classified as a…

A: In the equity method, investments are 1st recorded at cost and later adjusted based on the changes…

Q: One advantage of operating as a partnership would include: O a. Access to a larger amount of initial…

A: Partnership refers to an agreement where two or more people come together for a common goal. The…

Q: 14. What are dividends in arrears? How do they affect the allocation of dividends to preference and…

A: Dividends in arrears means dividend payable by company to its preference shareholders which is not…

Q: The distribution of a dividend that represents a partial return of the original investment made by…

A: Dividends can be paid in a number of different forms, including cash, stocks, and other assets. A…

Q: How and why should the cost of capital change when the Company must rely on new issues of common…

A: Issuance of new stock is the process by which a listed company tries to acquire additional capital…

Q: If a firm is maintaining both capital accounts and current accounts of the partners A and B.…

A: Partners capital account is the account were partners capital contribution are recorded. Partners…

Q: he profit or loss on realization is transferred to partners' capital accounts in their: Sacrificing…

A: REALIZATION PROFIT OR REALIZATION LOSS ARE TRANSFERRED TO THE PARTNER'S CAPITAL ACCOUNT IN THEIR…

Q: method, an investment in associate or joint venture is initially and subsequently measured at…

A: Answer - Option B Initial measurement - Cost Subsequent measurement- Cost, adjusted for the investor…

Q: 3. Under the equity method, which of the following decreases the carrying amount of an investment in…

A: Equity method is one of the method which is usee for accounting for investment in some associate or…

Q: Losses are first met out of what on dissolution: O a. Out of private assets of partners O b. Out of…

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

Partnership Accounting

A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc. 

Partner Admission and Withdrawal

A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.