Which one of the following alternatives is correct? O A. To ensure that compliance is followed, the financial statements of partnerships must be prepared according to IFRS. O B. When recording the valuation adjustments, if the value of a liability is decreased, the valuation account credited with the amount of a decrease. C. The selling price of the partnership
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- A well written partnership agreement should include each of the following except ________. A. how to settle disputes B. the name of the partnership C. division of responsibilities D. Partners individual tax rate1. In participation/partnership based contracts, __ is always subject to the ratio of investment while ___ distribution is based on pre-agreed ratio. Profit, Loss Loss, Loss Loss, Profit Profit, Profit 2. A Mudaraba is a non-binding contract. It means that Rab-ul-Maal or Mudarib, cannot terminate the partnership. True False 3. In Mudaraba profit is shared according to the pre-agreed proportion, while the loss has to be borne exclusively by the: Rabbul Maal Either Rabb ul Maal or Mudharib As per the agreed ratio between Rabbul Maal and Mudharib Mudharib4 I. The partnership contract, binds the partners to contribute money, property, or industry to a common fund with the intention of dividing profits equally. II. The partnership personality is distinct and separate from that of its partners. Group of answer choices BOTH STATEMENTS ARE TRUE ONLY THE 1ST STATEMENT IS TRUE ONLY THE 1ST STATEMENT IS FALSE BOTH STATEMENTS ARE FALSE
- S1: Partnership profits and losses (including bonuses and revaluations) are allocated in accordance with their Profit and Loss Ratio. S2: If only the share in the profits have been established in the articles of partnership, then the share in the losses must be in accordance with their profit ratio. a. Both are false b. S2 True; S1 False c. Both are true d. S1 True; S2 FalseS1: If the total contributed capital of the partnership is greater than the total agreed capital, it is possible that a goodwill be recognized or an undervaluation of asset occurred.S2: Noncash assets sold by the partnership will prioritize payment of Creditors S1 True; S2 FalseS2 True; S1 FalseBoth statements are falseBoth statements are true7) Which one of the following is a gain to the partnership firm? a. Interest on drawings b. Interest on loan from bank c. Interest on capital d. Withdrawal of capital
- S1: Partnership profits and losses (including bonuses and revaluations) are allocated in accordance with their Profit and Loss Ratio. S2: If only the share in the profits have been established in the articles of partnership, then the share in the losses must be in accordance with their profit ratio. A. Both are trueB. S2 True; S1 FalseC. Both are falseD. S1 True; S2 FalseS1: Partnership profits and losses (including bonuses and revaluations) are allocated in accordance with their Profit and Loss Ratio. S2: If only the share in the profits have been established in the articles of partnership, then the share in the losses must be in accordance with their profit ratio. Both are trueS2 True; S1 FalseBoth are falseS1 True; S2 False6. Which one of the following is a gain to the partnership firm? a.Interest on drawings b.Interest on capital c.Interest on loan from bank d.Withdrawal of capital
- 4. The objective of preparation of income statement of partnership is: a.To show the income and expenses of the partnership firm b.To show the financial position of business c.To show how net profit has been distributed among partners d.To show the ratio of capital of partnersPhilippine Partnership Corporation Cooperative Law Question1 I. A partnership is a separate juridical entity, the shares to be paid out to the partners is necessarily limited only to its total resources II. A partnership must refund the shares of the partners, the amount to be refunded is necessarily limited to its total resources. III. Before the partners can be paid their shares, the creditors of the partnership must first be compensated. After all the creditors have been paid, whatever is left of the partnership assets becomes available for the payment of the partner's shares. a. Only I is correct b. Only II is correct c. All are true d. All are false Question 2 The change in the relation of the parties caused by any partner ceasing to be associated in the carrying on, as might be distinguished from the winding up of, the business. a. Dissolution b. Liquidation c. Termination d. Winding up Question 3 X, Y and Z are partners in XYZ partnership. X and Y contributed P10,000 each…3- The objective of preparation of income statement of partnership is: a. To show the ratio of capital of partners b. To show the financial position of business c. To show the income and expenses of the partnership firm d. To show how net profit has been distributed among partners