When the profit and loss agreement provides for the allowance of interest on partner's equity and salaries to partners, why are the partners entitled to these allowances even if the partnership operations results in a l

Q: If the income of a partnership is not sufficient enough to satisfy all of the provisions of the…

A: When partnership business income is not sufficient to satisfy all the provision of partnership…

Q: When a partner withdraws from a partnership and the value of the assets paid to the partner by the…

A: The partnership comes into existence when two or more persons agree to do the business and further…

Q: If the partnership agreement only includes a provision on how to distribute losses, any partnersthip…

A: A partnership agreement is an interior business contract that outlines specific business practices…

Q: . A mode of settling the interest of a retiring partner that affects the partnership assets.

A: Retirement of partner will result a gain in profit sharing ratio between remaining partners. The…

Q: A new partner is admitted to an existing partnership. As a result of admission, the capital balances…

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

Q: Bonuses to the old partners arise under each of the following circumstances, except: a. Agreed…

A: Bonus to the partners are the earnings for the partners earned due to some extraordinary situation.

Q: When a new partner is admitted to an existing partnership through the purchase of a portion of…

A: The Partnership is a written contract between two or more people to do business for earning profit.…

Q: Which of the following transactions or events does not affect the total assets of a partnership?…

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

Q: The accounting treatment for the sale of the interest of the retiring partner to an outsider or…

A: Retirement occurs when a partner's entire interest is liquidated, and payment, therefore, is made…

Q: If there is partnership deed, then which one of the following will apply? a. Partners are not…

A: Partnership deed is an agreement between the partners of the firm that states the terms and…

Q: 1. Which of the following statements concerning partnership is true?   a. A partnership is a legal…

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

Q: Which of the following statements is TRUE? Partners are employees of the partnership. Salaries to…

A: Partnership: A partnership is defined as a relationship where two or more parties having compatible…

Q: partnership

A: -If there is no written, legal agreement for the partnership then which one of the following will…

Q: Which of the following methods of partnership admission will not result in a change in partnership…

A: When the partner is admitted to the partnership, total partnership and existing partner's capital…

Q: Bonuses to the old partners arise under each of the following circumstances, except:  a. Agreed…

A: A partnership seems to be a commercial entity composed of two or even more combined owner who have…

Q: the absence of agreement as to distribution of loss,

A: Option a is wrong because the partnership loss shall be distributed to the capitalist partners in…

Q: Which of the following IS an allowable deduction for partnerships? Select one: Superannuation…

A: Allowable deductions are described as those payments or expenses that can be deducted from the…

Q: f there is partnership deed, then which one of the following will apply? a. Interest on capital is…

A: Solution:   In the absence of partnership deed: 1. Interest on capital is not allowed 2. Partners…

Q: When the old partners receive a bonus upon admission of a new partner into a partnership, the bonus…

A: The question is related to Partnership Accounting.

Q: The following transactions will affect the balance of the total partnership capital except  a.…

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

Q: Which of the following statements regarding limited partnerships is true? A) There is no limit on a…

A: Limited liability partnership:- A limited partnership is identical to a general partnership, except…

Q: The following partnership accounts represent a liability of a partner to the partnership, except *…

A: Receivable from partner is current assets for firm & liability of a partner to the partnership.…

Q: Which of the following statements is not correct? * O A bonus us normally shared by the existing…

A: The question is related to Partnership Accounting.

Q: In a going concern, why is the profit or loss of a partnership is being closed to the partners’…

A: Going concern: It is one of the fundamental accounting concept that states that the business entity…

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: Because guaranteed payments are treated the same as a payment to a non-partner, they: A. Will never…

A: Guaranteed payments are the reward, regardless of the benefit or loss of the company, to the…

Q: Why are both non-taxable income and non-deductible expenses received and incurred at the partnership…

A: Non- Taxable Income-: Non-Taxable Income is any income that is exempted from being taxed by the laws…

Q: A partner's initial capital contribution on date of partnership formation is generally equal to: The…

A: Solution: A partnership is a agreement between two or more parties to manage and operate a business…

Q: Refer to Problem 1: If Pete pays P4,200 for 4 of the interest of Tan, and the deficiency in the…

A: Partnership: A form of organization formed by legal agreement between two or more persons for…

Q: When the investment of a new partner into the partnership exceeds his/her initial capital credit,…

A: When the investment of a new partner into the partnership is less than his/her initial capital…

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

A: The partnership is a business firm, where two or more persons do the business and earn the profits…

Q: In purchase of interest in partnership, the payment made by new partner is A) Paid to the…

A: The partnership comes into existence when two or more persons agree to do the business and share…

Q: If there is no written, legal agreement for the partnership then which one of the following will…

A: There should be an legal agreement for partners to receive salaries or bonuses. In the absence of…

Q: 1. Why do you think an industrial partner does not share in the losses of partnership?

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

Q: If a partner with a capital deficiency is unable to pay the amount owed to the partnership, the…

A: When a partner is unable to pay a capital shortfall due to insolvency, the other partners with…

Q: When two or more sole proprietors form a partnership, the following are correct, except When a…

A: Partnership is one of the agreement or arrangement between two or more than two persons, in which…

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: hich of the following transactions or events does not affect the total assets of a partnership? An…

A: Solution: Total assets of a partnership are effected by the retirement of existing partner at lower…

Q: The outside basis is defined in the internal revenue code as a partner's basis in the partnership…

A: True

Q: Which of the following is an election or calculation made by the partner rather than the…

A: Partnership is one of the forms of business organizations wherein two or more than two persons work…

Q: Which of the following instances does not dissolve the partnership? Group of answer choices…

A: Solution: Following instances result in dissolution of partnership: 1. Admission of Mr. X in the ANC…

Q: Assume a partner withdraws from a partnership and receives assets of greater value than the book…

A:

Q: Complete the following statement: When there is neither Partnership Deed nor express agreement or…

A: A partnership is an association of two or more people to carry on the common business with the…

Q: When a new partner is admitted into the partnership by investment, the following take place except O…

A: Partnership is one of the arrangement between two or more than two partners, under which they invest…

Q: The partners' drawing accounts need not be closed to the capital accounts if the partnership opts to…

A: The partners' drawing accounts need not be closed to the capital accounts if the partnership opts to…

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: What characteristics of a partnership justify the absorption by the other partners of the deficiency…

A: Insolvency refers to the situation in which the person is unable to pay off his debts or the sum…

Q: If no agreement exists in a partnership as to the allocation of income, what method is appropriate?…

A: Partnership:   It is a form of a business where two or more people come together to do business…