FUND.ACCT.PRIN.(LOOSELEAF)-W/CONNECT
25th Edition
ISBN: 9781264218103
Author: Wild
Publisher: MCG
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Textbook Question
Chapter 12, Problem 10DQ
Kay, Kat, and Kim are partners. In a liquidation, Kay’s share of partnership losses exceeds her capita) account balance. Moreover she is unable to meet the deficit from tier personal assets, and her partners share the excess losses. Does this relieve Kay of liability?
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During a liquidation, if a partner’s capital account balance drops below zero, what Should Happen?
The other partners file a legal suit against the partner with the deficit balance.
The partner with the highest capital balance contributes sufficient assets to eliminate the deficit.
The deficit balance is removed from the accounting records with only the remaining partners sharing in future gains and losses.
The partner with a deficit contributes enough assets to offset the deficit balance.
Which of the following factor(s) is/are considered by courts in
determining whether an act committed by an employee occurred
within the course and scope of employment?
Whether the employer knew that the act would involve the commission of a
serious crime.
O Whether the employer authorized the employee's act and whether the
employer provided the tools by which the act occurred, but not whether the
employer knew that the act would involve the commission of a serious
crime.
Whether the employer provided the tools by which the act occurred.
O Whether the employer authorized the employee's act.
Whether the employer authorized the employee's act, whether the
employer provided the tools by which the act occurred, and whether the
employer knew that the act would involve the commission of a serious
crime.
In a partnership, a capital deficiency occurs for a partner when
Options:
• His share in the losses of the partnership is more than his capital balance
• Loan payable by the partnership to him greater than his capital balance
• His solvency is lesser than his capital balance
• His personal assets are less than his personal liabilities
Chapter 12 Solutions
FUND.ACCT.PRIN.(LOOSELEAF)-W/CONNECT
Ch. 12 - Prob. 1QSCh. 12 - Prob. 2QSCh. 12 - Prob. 3QSCh. 12 - Prob. 4QSCh. 12 - Prob. 5QSCh. 12 - Prob. 6QSCh. 12 - Prob. 7QSCh. 12 - Prob. 8QSCh. 12 - QS 12-9
Liquidation of partnership
P5
The Field,...Ch. 12 - Prob. 10QS
Ch. 12 - Prob. 11QSCh. 12 - Prob. 12QSCh. 12 - Prob. 13QSCh. 12 - Prob. 14QSCh. 12 - Prob. 1ECh. 12 - Prob. 2ECh. 12 - Prob. 3ECh. 12 - Prob. 4ECh. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - Prob. 7ECh. 12 - Prob. 8ECh. 12 - Prob. 9ECh. 12 - Prob. 10ECh. 12 - Prob. 11ECh. 12 - Prob. 12ECh. 12 - Prob. 13ECh. 12 - Prob. 14ECh. 12 - Prob. 15ECh. 12 - Prob. 1PSACh. 12 - Prob. 2PSACh. 12 - Prob. 3PSACh. 12 - Prob. 4PSACh. 12 - Prob. 5PSACh. 12 - Prob. 6PSACh. 12 - Prob. 1PSBCh. 12 - Prob. 2PSBCh. 12 - Prob. 3PSBCh. 12 - Prob. 4PSBCh. 12 - Prob. 5PSBCh. 12 - Prob. 6PSBCh. 12 - Prob. 12SPCh. 12 - Prob. 1AACh. 12 - Prob. 2AACh. 12 - Prob. 3AACh. 12 - Prob. 1DQCh. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQCh. 12 - Prob. 6DQCh. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Kay, Kat, and Kim are partners. In a liquidation,...Ch. 12 - Prob. 11DQCh. 12 - Prob. 12DQCh. 12 - Prob. 1BTNCh. 12 -
BTN 12-4 Assume that you are studying for an...Ch. 12 - BTN 12-3 Access the 2017 10-K of Advanced...Ch. 12 - Prob. 4BTN
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- 1. In a partnership liquidation the realization losses result in a debit balance in one partners’ capital account. If this partner fails to contribute personal assets to make up this deficit, how should the debit balance be handled by the partners? a. It should be written off against partnership profits like any other bad debt. b. It should be allocated to all the partners in their profit and loss ratio. c. It should be allocated to the remaining partners in their remaining P and L ratio. d. It should be set up as a receivable and turned over to a collection agency. 2. During liquidation, a partners’ capital account balance drops below zero. What should happen? a. The other partners should file a legal suit against the partner with the deficit balance. b. The partner with the highest capital balance should contribute sufficient assets to eliminate the deficit. c. The deficit balance…arrow_forwardEmilio Alvarez and Graciela Zavala joined together to form a partnership. Is it posible for them to lose a greater amount than the amount of their investment in the partnership? Explian.arrow_forwardIn the liquidating process, any uncollectible deficiency becomes a loss to the partnership and is divided among the remaining partners' capital balances based on their income-sharing ratio. True Falsearrow_forward
- If a retiring partner agrees to withdraw less than the book value of his/her interest, the effect of this transaction will decrease the capital account of the remaining partnesarrow_forwardWhich of the following is a disadvantage of general partnerships? ( a) The partners in a general partnership are exposed to double taxation. ( b) Compared to the other forms of ownership, the paperwork and costs involved in forming a general partnership are the most extensive. ( c) A partner who withdraws from a partnership cannot be held liable for any debts the furm had at the time of withdrawal. ( d) All general partners have unlimited liability for the debts and obligations of their business.arrow_forwardIn the liquidation of a partnership, why might a partner be concerned that a fellow partner has a deficit net capital balance, and how might such a deficit be eliminated?arrow_forward
- Write TRUE if the statement is correct and FALSE if the statement is wrong. Write your answers on the space provided before the number. Erasures are strictly NOT allowed. 1. The loss absorption balances represent the maximum loss that the partners could absorb without reducing their equity below zero. 2. Gains and losses on the sale of assets in liquidation are divided equally among partners. 3. A partnership maybe dissolved without being liquidated but liquidation is always preceded by dissolution. 4. Under the installment method of partnership liquidation, realization of non-cash assets is accomplished over an extended period of time. When cash is available, creditors may be partially or fully paid. Any excess maybe distributed to the partners in accordance with a program of safe payments or a cash priority program. This process persists until all the non-cash assets are sold. 5. Restricted interest are provided for assumed non-sale of remaining non-cash assets and…arrow_forward3 When Jill retired from the partnership of Jill, Bill and Hill, the final settlement of her interest exceeded her capital balance. Under the bonus method, the excess Group of answer choices Was recorded as an expense. Had no effect on the capital balances of Bill and Hill. Was recorded as goodwill. Reduced the capital balance of Bill and Hill.arrow_forwardChoose the correct. During a liquidation, if a partner’s capital account balance drops below zero, what should happen?a. The other partners file a legal suit against the partner with the deficit balance.b. The partner with the highest capital balance contributes sufficient assets to eliminate the deficit.c. The deficit balance is removed from the accounting records with only the remaining partners sharing in future gains and losses.d. The partner with a deficit contributes enough assets to offset the deficit balance.arrow_forward
- There is no impact on the statement of comprehensive income of a partnership when a partner withdraws from the businessarrow_forwardDuring a liquidation, if a partner's capital account balance drops below zero, what should happen? Multiple Choice The partner with a deficit contributes enough assets to offset the deficit balance. The other partners file a legal suit against the partner with the deficit balance. The partner with the highest capital balance contributes sufficient assets to eliminate the deficit. The deficit balance is removed from the accounting records with only the remaining partners sharing in future gains and losses.arrow_forward11. A deficiency occurs for a partner whena. his personal assets are less than his personal liabilities.b his share in the losses of the partnership is more than his capital balancec. his personal assets are lesser than his capital balance.d. loan payable by the partnership to him is greater than his capital balance.arrow_forward
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