Which of the following case would allow the capitalization of Interest Expense -No Case allows this transaction -Provided the interest is immaterial -Only if Management Allows -Borrowing Cost
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A: Total contributed capital means the amount contributed by the partners to the new partnership firm
Q: Which of the following is NOT true about the statement of financial position of a partnership? The…
A: Statement of financial position is a part of financial statements in which assets and liabilities…
Q: Which of the following is NOT true about the statement of financial position of a partnership? O…
A: Partnership means where two or more partners agree to do the business jointly and share profit and…
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A: There is limit of 200 partners in a partnership.
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Q: Which of the following is not correct with respect to an installment liquidation of a partnership?…
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Q: 1. When a property other than Cash is invested in a partnership, at what amount should the noncash…
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Q: partnership final accounts?
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Q: the absence of agreement as to distribution of loss,
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Q: f there is partnership deed, then which one of the following will apply? a. Interest on capital is…
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Q: Allocate the salaries, interest and bonus as per partnership agreement
A: (Note: Since you have posted multiple questions, we will solve the first question for you. For the…
Q: The following characteristics represents differences of partnership from a corporation, except *…
A: SOLUTION- LIABILITY OF PARTNERS IN PARTNERSHIP IS UNLIMITED ACCORDING TO INDIAN PARTNERSHIP ACT…
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Q: True or False The salary to partners and/or interest on their capital is still distributed in…
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Q: Generally, gain is not recognized on contribution of appreciated property to a partnership. Which…
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Q: Which statement is incorrect? * -The accrual basis of accounting is used to account for partnership…
A: Since you have asked multiple questions, we will solve the first question for you . If you want any…
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Q: 1. In a partnership liquidation the realization losses result in a debit balance in one partners’…
A: Hi student Since there are multiple questions, we will answer onky first question.
Q: absence of a Partnership Agreement, which of the following principles apply? A. Interest on…
A:
Q: In the liquidating process, any uncollectible deficiency becomes a loss to the partnership and is…
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Q: 1. If the partnership agreement does not specify how profits or losses are to be distributed, they…
A: Hi student Since there are multiple questions, we will answer only first question.
Q: Which statement is incorrect? -All partnerships should have at least one general partner. -A…
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Q: Which of the following statement is true regarding the admission of a new partner? a. New partner…
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Q: Which of the following statements is correct when a new product is admitted to an existing…
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A: Step 1 For taxation of partnership, there are two tax bases which are: Inside basis Outside basis…
Q: What is the meaning of the statement below? Please explain. In the partnership agreement, interest…
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Q: Which one of the following alternatives is correct? O A. To ensure that compliance is followed, the…
A: The answer for the multiple choice question and relevant explanation are presented hereunder : When…
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Q: For a partnership, which of the following account is not a current asset
A: Current assets are the assets that provide a financial benefit to the company in the future. It…
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: Assess the truth of this statement: One of the rules of debits and credits and account balances for…
A: Assets and liabilities are measured as per real account concept.
Q: When a partnership is liquidated, which of the following statements is FALSE? Non-cash assets are…
A: Partnership: It is an agreement between two or more individuals to share profit and losses of the…
Q: Which of the following statements is correct when a new partner is admitted to an existing…
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- Which one of the following would not be considered in the development of a partnership agreement? A. profit and loss levels B. processing disputes C. stock options D. asset contributionsWhich 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 resourcesWhen 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?
- How does a newly formed partnership handle the contribution of previously depreciated assets? A. continues the depreciation life as if the owner had not changed B. starts over, using the contributed value as the new cost basis C. shortens the useful life of the asset per the partnership agreement D. does not depreciate the contributed assetWhen 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 partnersIf the partnership operations result to net loss, which of the following distribution schemes is correct? -Allocate the salaries and interest but not the bonus -Allocate the salaries, interest and bonus as per partnership agreement -Agreement as to salaries, interest and bonus are disregarded, distribute only the loss -Allocate the salaries only but not interest and bonus PFRS 5 defines a "disposal group" (i.e., that will be disposed through sale) to include: -non-current assets and some directly associated liabilities -current assets, non-current assets and some directly associated liabilities -non-current assets only -current and non-current assets
- Which statement is incorrect? * -The accrual basis of accounting is used to account for partnership operation. -When expenses exceed revenues, the income summary account will be debited when closing it to the partners’ capital accounts. -In the absence of any agreement, profits and losses shall be divided based on original capital -Salaries and interest on capital given to partners are not considered as partnership expenses but rather as only a means of distributing partnership net income. -none of the above Which statement(s) is incorrect? * -Income summary account is closed directly to capital account if the intention of the partners is to make profit or loss part of permanent capital. -Beginning capital refers to the initial investment of a partner upon formation of the partnership. -A capitalist-industrial partner shares on the partnership profits as well as on partnership losses. -The salary to partners and/or…Generally, gain is not recognized on contribution of appreciated property to a partnership. Which of the following situations may be an exception to that general rule? PICK ALL THAT APPLY!!! Question 1 options: The contributing partner contributes appreciated property to the partnership and shortly after receives a large distribution of cash from the partnership so that most of the partner's interest in the partnership is liquidated. The exchange appears to essentially be a partial sale of the property through the partnership form. The partner contributes appreciated property to a partnership and the partner is not in control of the partnership (over 50% ownership). A partner receives a capital interest for services performed for the partnership. The partner contributes a property to the partnership that is encumbered by a recourse liability, the partnership assumes the liability, and the net effect of these is to take…Which of the following statements is FALSE? A. A basis adjustment under 734(b) attributable to a partnership distribution is designed to protect the partners who did not receive the distribution from recognizing built-in gains that belong to the distributee partner. B. In order to determine the correct tax result for payments to a deceased or retired partner, one must first determine the retiring/deceased partner's share of the fair market value of partnership assets. Unrealized receivables are not considered an "asset" for this purpose if capital is not material income producing factor (such as a law firm). C. Payments to a retiring partner that compensate the partner for his share of the fair market value of partnership property are treated as guaranteed payments. D. All of the above statements are TRUE
- The following characteristics represents differences of partnership from a corporation, except * -mutual agency -unlimited liability -limited life -separate legal personality -answer not given To compensate the partners for the difference in capital contributions, they may include which of the following in their profit or loss sharing agreement? * -ratio based on capital -interest and salaries -interest and bonus -interest and ratio based on capital -answer not given Profit distribution method that recognizes primarily the time and effort that a partner may devote to the partnership’s business operations. * -interest on capital -salary to partner -bonus to partner -both salary to partner and bonus to partner -answer not givenWhat is the proper disposition of a partnership loan that was made from a partner who has a debit balance in the capital account? A. The loan is ignored in liquidation. B. The loan is offset against the debit balance in the capital account. C. The loan is charged off to the capital accounts of all the partners in their profit and loss sharing ratios. D. The loan is held for payment after all other capital accounts are covered.Which of the following statements is correct when a new product is admitted to an existing partnership by purchasing a portion of a capital interest of an existing partner? A. The partnership will recognize gain or loss in the transfer of capital from one partner to another partner. B. It will result to revaluation or impairment of existing assets of the partnership C. It will just result to credit to capital of newly admitted partner with corresponding debit to capital of the selling partner D. The partnership is not dissolved by the admission of a new partner by purchase
