When separate set of books are kept for keeping the accounts of Joint venture, then_______. Select one: a. transactions take the form of ordinary accounting system b. memorandum joint venture account is prepared c. memorandum joint venture account is prepared and transactions take the form of ordinary accounting system d. only joint venture and personal accounts of the Venturers are maintaine

When separate set of books are kept for keeping the accounts of Joint venture, then_______. Select one: a. transactions take the form of ordinary accounting system b. memorandum joint venture account is prepared c. memorandum joint venture account is prepared and transactions take the form of ordinary accounting system d. only joint venture and personal accounts of the Venturers are maintaine

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter10: Partnerships: Formation, Operation, And Basis

Section: Chapter Questions

Problem 15DQ

See similar textbooks

Similar questions

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
In financial statements that are not separate financial statements, how should a joint venturer account for its interest in a joint arrangement? a. As an investment measured either at cost, fair value or using equity method b. As an investment measured using the equity method c. By using a T-account d. By recognizing its share in the assets, liabilities, income and expenses of the join venture and adding them line by line to similar accounts
In a joint venture, the partners donot act in common or act as an agent to one another . What does this mean . Give examples.
Is this set up possible? A and B entered into a partnership AB and Assoc, C and D entered into a partnership CD and Assoc, AB, CD and F corporation entered into a joint venture, how would you account for that?
Indicate what is the difference between a general partnership and a limited liability company and when might each type of entity be used by completing the table below. Classify each characteristic as belonging to a "General partnership", a "Limited liability company", or both a "General partnership and limited liability company". Characteristic belongs to ... a. Partners are considered members b. Permitted to participate in management of the entity c. Creditors collect from both partnership assets and partners. d. The partners have unlimited liability for the entity's debt. e. Absent a personal guarantee, no liability for the entity's debt. f. Usually used for corporate joint ventures where the corporate partners are established with limited assets.
Which of the following statements about joint arrangements is/are incorrect: (i) Whenever a joint arrangement is structured through a vehicle that is separate from the parties, the arrangement is classified as a joint venture (ii) Whenever the contractual arrangements give the parties rights to the assets and obligations for the liabilities of the arrangement, the arrangement is classified as a joint operation (iii) Joint operations are reported in the consolidated statement of financial position of the joint operator by recognising the share of assets and liabilities attributable to the joint operator (iv) Joint ventures are reported in the consolidated statement of financial position of the joint venturer using the equity method of accounting a. (i) only b. (ii) only c. (iii) only d. (iv) only e. (i) and (ii)
The partnership of King, Queen and Prince engaged you to audit its accounting records. Some accounts are on theaccrual basis and others are on the cash basis. The partnership’s books were closed at December 31, 2007 by thebookkeeper who prepared the general ledger trial balance that appears below. King, Queen and PrinceGENERAL LEDGER TRIAL BALANCEDecember 31, 2007Debit CreditCash P 100,000Accounts receivable 400,000Inventory 260,000Land 90,000B Buildings500,000 Accumulated depreciation- buildings P 20,000Equipment 560,000Accumulated depreciation- equipment 60,000Goodwill 50,000Accounts payable 550,000Allowance for future inventory losses 30,000King, capital 600,000Queen, capital 400,000Prince, capital . 300,000 Totals P1,960,000 P1,960,000 Your inquiries disclosed the following:1. The partnership was organized on January 1, 2006 with the partners making equal amount ofcontributions. The initial partnership agreement calls for an equal distribution of profit or loss among thepartners.…
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.
1. cash payments to partners of a partnership in liquidation are delayed until all noncash assets have been realized, any cash remaining after all partnership creditors have been paid is distributed a. In the ratio for sharing net income and losses b. According to the liquidator’s best judgment c. In amounts equal to the partners’ loan and capital account balances d. In some other manner 2. A joint arrangement in which the assets and liabilities relating to the arrangement are held in a separate vehicle can be: a. Neither joint venture nor joint operation b. Joint operation c. Joint venture d. Either joint venture or joint operation
Which of the following statements is most true? a. The liability for other partners’ wrong doings is limited to the amount a particular partner has invested in the partnership. b. Partnerships are formed in accordance with specific guidelines that include the filing of a formal written agreement to the government. c. A fast growing firm would be more probable to establish a partnership as its business form than would a slow growing firm. d.Corporations can easier attract investors than those of the partnership and sole proprietor businesses.
How does partnership accounting differ from corporate accounting? A. The matching principle is not considered appropriate for partnership accounting B. Partnerships report all assets at fair value as of the latest balance sheet data C. Revenues are recognized at a different time by a partnership that is appropriate for a corporation D. Individual capital accounts replace the contributed capital and retained earnings balances found in corporate accounting
A joint arrangement in which the assets and liabilities relating to the arrangement are held in a separate vehicle can be: a. Either joint venture or joint operation b. Joint venture c. Neither joint venture nor joint operation d. Joint operation