College Accounting, Chapters 1-27
23rd Edition
ISBN: 9781337794756
Author: HEINTZ, James A.
Publisher: Cengage Learning,
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Chapter 19, Problem 1MC
To determine
State the option which is a basis for sharing
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4. How shall the profits and losses of the partnership be distributed among the partners?
a. It should be divided equally.
b. It should be divided according to their profits and losses sharing agreement.
c. It should be divided proportionately in accordance with capital contribution.
d. It should be divided according to what type of partner they are.
What is the purpose of a partnership appropriation account?
A to avoid disagreements between the partners
B to calculate residual profits for division between partners
C to calculate the profit sharing ratio
D to determine the amount of partners’ salaries
Choose the correct. If a partnership is liquidated, how is the final allocation of business assets made to the partners?a. Equally.b. According to the profit and loss ratio.c. According to the final capital account balances.d. According to the initial investment made by each of the partners.
Chapter 19 Solutions
College Accounting, Chapters 1-27
Ch. 19 - Prob. 1TFCh. 19 - Prob. 2TFCh. 19 - Prob. 3TFCh. 19 - Prob. 4TFCh. 19 - Prob. 5TFCh. 19 - Prob. 1MCCh. 19 - Prob. 2MCCh. 19 - Prob. 3MCCh. 19 - Prob. 4MCCh. 19 - Prob. 5MC
Ch. 19 - Prob. 1CECh. 19 - Prob. 2CECh. 19 - Prob. 3CECh. 19 - Prob. 4CECh. 19 - Prob. 5CECh. 19 - Prob. 1RQCh. 19 - Prob. 2RQCh. 19 - Prob. 3RQCh. 19 - Prob. 4RQCh. 19 - Prob. 5RQCh. 19 - Prob. 6RQCh. 19 - Prob. 7RQCh. 19 - Prob. 8RQCh. 19 - Prob. 9RQCh. 19 - Prob. 1SEACh. 19 - Prob. 2SEACh. 19 - Prob. 3SEACh. 19 - Prob. 4SEACh. 19 - ENTRIES: PARTNERSHIP LIQUIDATION On liquidation of...Ch. 19 - Prob. 6SPACh. 19 - Prob. 7SPACh. 19 - Prob. 8SPACh. 19 - Prob. 9SPACh. 19 - STATEMENT OF PARTNER SHIP LIQUIDATION WITH LOSS...Ch. 19 - Prob. 1SEBCh. 19 - Prob. 2SEBCh. 19 - Prob. 3SEBCh. 19 - Prob. 4SEBCh. 19 - Prob. 5SEBCh. 19 - Prob. 6SPBCh. 19 - Prob. 7SPBCh. 19 - ENTRIES FOR DISSOLUTION OF PARTNERSHIP Cummings...Ch. 19 - Prob. 9SPBCh. 19 - STATEMENT OF PARTNER SHIP LIQUIDATION WITH LOSS...Ch. 19 - Prob. 1MYWCh. 19 - Prob. 1ECCh. 19 - Prob. 1MPCh. 19 - Prob. 1CPCh. 19 - Prob. 1COP
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- Choose the response that correctly describes a guaranteed payment. A loan payment from the partnership to pay back a loan from a partner. A loan payment from the partner to pay back a loan from a partnership. A payment made to a partner from the profits of the partnership. A payment made to a partner without regard to the income of the partnership.arrow_forward4 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 FALSEarrow_forwardChoose the response that correctly describes a guaranteed payment. (a) A loan payment from the partnership to pay back a loan from a partner. (b) A loan payment from the partner to pay back a loan from a partnership. (c) A payment made to a partner from the profits of the partnership. (d) A payment made to a partner without regard to the income of the partnershiparrow_forward
- 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. A. BOTH STATEMENTS ARE TRUE B. ONLY THE 1ST STATEMENT IS FALSE C. BOTH STATEMENTS ARE FALSE D. ONLY THE 1ST STATEMENT IS TRUEarrow_forward1) The objective of preparation of income statement of partnership is: a.To show the ratio of capital of partners b.To show how net profit has been distributed among partners c.To show the income and expenses of the partnership firm d.To show the financial position of businessarrow_forwardWhen the old partners receive a bonus upon admission of a new partner into apartnership, the bonus is allocated to:I All the partners in their profit and loss sharing ratio.II The existing partners in their profit and loss sharing ratio A. I only C. Either I or IIB. II only. D. Neither I nor IIarrow_forward
- 1. 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 Mudharibarrow_forwardThe percentage of ownership of interest of the partners is always the same as their profit sharing ratio True or Falsearrow_forwardThe distribution of cash, as the final process in winding up the affairs of a partnership, is based on the income-sharing ratio. Group of answer choices True Falsearrow_forward
- The objective of preparation of income statement of partnership is: a. To show how net profit has been distributed among partners b. To show the financial position of business c. To show the ratio of capital of partners d. To show the income and expenses of the partnership firmarrow_forwardQuestion Blue and Grey are discussing how income and losses should be divided in a partnership they plan to form. What factors should be considered in determining the division of net income or net loss?arrow_forwardQuestion: True or False 1) According to the Partnership Act, the profit of the partnership business will be shared equally irrespective of how much each partner has contributed as capital. reqiured: please answer this question by stating whether this statement is true or false.arrow_forward
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