1. When the investment of a new partner is below the new partners' capital balance and goodwill is not recorded, who will receive the bonus: a.The new partner.b.The old partners in their old profit and loss ratio.c.The old partners in their new profit and loss ratio.d.The old and new partners in their new profit and loss ratio 2.S1: Admission of a new partner by investment generally increases the total assets and capital of the new partnership unless there is a negative asset revaluation.S2: Admission of a new partner by the purchase of interest will never affect the total assets and capital of the new partnershipa. S1 is false, S2 is true b. Both statements are true c. Both statements are false d. S1 is true, S2 is false   3. S1: In lumpsum liquidation, the remaining cash available after realization and payment of liquidation expenses, will always be equal to the total interest of the partners.S2: In installment liquidation, the partner who has the highest absorption capacity shall be…

Statement I: When a Partnership's operations resulted to a net loss, a partner who contributed legal services, shall have share of loss in accordance to the losses agreement. However, if there is no losses agreement, he shall not be liable to any loss.Statement II: All withdrawals and investments shall be considered when computing for the weighted average capital balance. Group of answer choices S1 is true; S2 is false Both statements are true S1 is false; S2 is true Both statements are false

8 Which of the following ratio helps the partners to determine the amount of compensation to be paid by the new partner to the old partners for the share of profit surrendered? a. Sacrificing Ratio b. New Profit Sharing Ratio c. Gaining Ratio d. None of the options are correct

is it true or false? Explain   Unless stated otherwise,in the partnership contract,profits and losses are shared among the partners in the ratio of their capital equity balances.

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…

Which of the following distribution would be made last in dividing profits to the partners when interest on capital balances and salary allowances are involved? * 1 point       a. Equally b. Specified ratio c. Salary allowances d. Interest on capital balances

A partner's withdrawal of assets from a LLP that is considered a permanent reduction in that partner's equity is debited to the partner's: Select one :- a. Retained Earnings account b. Loan Receivable account c. Drawing account d. Capital account

If A is the total capital of the partnership before the admission of a new partner, B is the total capital of the partnership after the investment of a new partner, C is the amount of the new partner’s investment, and D is the amount of capital credit to the new partner, then there isa) A bonus to the old partner if B = A + C and D=C.b) A bonus to the new partner if B = A + C and D=C.c) A bonus to the old partner if B = A + C and D>C.d) A bonus to the new partner if B = A + C and D>C.

Which of the following items decreases a partner's at-risk basis?    A borrowed amount, secured by property used outside the activity, contributed to the partnership by a partner.  Cash contributed to the partnership by the partner.  Cash distributed to the partner by the partnership.  The partner's distributive share of net gains from the partnership.