Question 1

Which of the following is correct?

Accepted Answer

A) Total assets + Partner's equity = Total liabilities. 
B) Total assets + Partner's equity - Total liabilities = Total equity. 
C) Total assets - Partner's equity = Total liabilities. 
D) Total assets + Total liabilities = Partner's equity. 
A) Total assets + Partner's equity = Total liabilities. 
B) Total assets + Partner's equity - Total liabilities = Total equity. 
C) Total assets - Partner's equity = Total liabilities. 
D) Total assets + Total liabilities = Partner's equity.

Question 2

After selling all the assets and paying the liabilities in a liquidation of a partnership,the partners share any remaining cash according to the stated ratios.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following does not result in the dissolution of a partnership?

Accepted Answer

A) Death of a partner 
B) Admission of a new partner 
C) Withdrawal of a partner 
D) Sale of partnership assets 
A) Death of a partner 
B) Admission of a new partner 
C) Withdrawal of a partner 
D) Sale of partnership assets

Question 4

Eddie and Lauren are partners in a business.Eddie's original capital contribution was $80,000,and Lauren's was $120,000.They agreed to share profits as follows:
   Calculate each partner's share of profits,assuming (a)the profit was $200,000,and, (b)the profit was $140,000.

Accepted Answer

a.Eddie,$88,000 Laur

Question 5

When a partner invests a noncash asset into the partnership,the partner's Capital account is debited and an asset account is credited.

Accepted Answer

A) True 
 B)False

Question 6

Disadvantages of a partnership include

Accepted Answer

A) facilitates pooling of resources. 
B) no corporate tax burden. 
C) mutual agency. 
D) freedom and flexibility for partners. 
A) facilitates pooling of resources. 
B) no corporate tax burden. 
C) mutual agency. 
D) freedom and flexibility for partners.

Question 7

When a partner invests assets other than cash into a partnership,those assets should be listed on the balance sheet at

Accepted Answer

A) their original cost. 
B) their carrying (book)value. 
C) their fair market value. 
D) the value the investing partner assigns to them. 
A) their original cost. 
B) their carrying (book)value. 
C) their fair market value. 
D) the value the investing partner assigns to them.

Question 8

Justin and Nicole are forming a partnership.What are some of the factors they should consider in deciding how income might be divided?

Accepted Answer

The factors that should be considered in

Question 9

Which of the following is incorrect regarding partnerships?

Accepted Answer

A) Legally,there is no economic separation between a partnership and its owners. 
B) A partnership is a voluntary association of individuals. 
C) If the partnership agreement does not describe the method of income distribution,the partners must share income equally. 
D) When individuals invest property in a partnership,they co-own the property with the partnership. 
A) Legally,there is no economic separation between a partnership and its owners. 
B) A partnership is a voluntary association of individuals. 
C) If the partnership agreement does not describe the method of income distribution,the partners must share income equally. 
D) When individuals invest property in a partnership,they co-own the property with the partnership.

Question 10

A partnership is an accounting entity separate and apart from its owners.

Accepted Answer

A) True 
 B)False

Question 11

A partnership is liquidated when a new partner is admitted to the partnership.

Accepted Answer

A) True 
 B)False

Question 12

A partner who withdraws from a partnership may not withdraw the balance in his or her Capital account.

Accepted Answer

A) True 
 B)False

Question 13

There is no income tax imposed on a partnership.

Accepted Answer

A) True 
 B)False

Question 14

Admission of a new partner never has an impact on net income.

Accepted Answer

A) True 
 B)False

Question 15

Fred,Kristina,and Nick each receive a $14,000 salary,as well as 15 percent interest on their respective average investments of $40,000,$20,000,and $80,000.If they share remaining income in a 4:3:2 ratio,respectively,by how much would Nick's account increase assuming net income of $81,000.

Accepted Answer

The answer of Fred,Kristina,and Nick each receive a $14,000 salary,as...

Question 16

When a new partner is admitted,it will dissolve the old partnership.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following methods of distributing income cannot be accomplished (cannot stand alone)?

Accepted Answer

A) Capital balance ratio alone 
B) Interest and stated ratio alone 
C) Stated ratio alone 
D) Salary alone 
A) Capital balance ratio alone 
B) Interest and stated ratio alone 
C) Stated ratio alone 
D) Salary alone

Question 18

Delta and Chen form a partnership and invest the following assets and liabilities
  In the journal provided prepare the entry to record the formation of the partnership.(Omit explanation. )

Accepted Answer

The answer of Delta and Chen form a partnership and...

Question 19

Briyanna and Greg form a partnership and invest the following assets and liabilities.Greg's building is subject to a $40,000 mortgage that is not assumed by the partnership.
 
In the journal provided prepare the entry to record the formation of the partnership.(Omit explanation. )

Accepted Answer

The answer of Briyanna and Greg form a partnership and...

Question 20

Gains on the sale of assets in a liquidation are divided among partners according to the stated ratios.

Accepted Answer

A) True 
 B)False

Exam 27: Accounting for Unincorporated Businesses

Which of the following is correct?

After selling all the assets and paying the liabilities in a liquidation of a partnership,the partners share any remaining cash according to the stated ratios.

Which of the following does not result in the dissolution of a partnership?

Eddie and Lauren are partners in a business.Eddie's original capital contribution was $80,000,and Lauren's was $120,000.They agreed to share profits as follows: Calculate each partner's share of profits,assuming (a)the profit was $200,000,and, (b)the profit was $140,000.

When a partner invests a noncash asset into the partnership,the partner's Capital account is debited and an asset account is credited.

Disadvantages of a partnership include

When a partner invests assets other than cash into a partnership,those assets should be listed on the balance sheet at

Justin and Nicole are forming a partnership.What are some of the factors they should consider in deciding how income might be divided?

Which of the following is incorrect regarding partnerships?

A partnership is an accounting entity separate and apart from its owners.

A partnership is liquidated when a new partner is admitted to the partnership.

A partner who withdraws from a partnership may not withdraw the balance in his or her Capital account.

There is no income tax imposed on a partnership.

Admission of a new partner never has an impact on net income.

Fred,Kristina,and Nick each receive a $14,000 salary,as well as 15 percent interest on their respective average investments of $40,000,$20,000,and $80,000.If they share remaining income in a 4:3:2 ratio,respectively,by how much would Nick's account increase assuming net income of $81,000.

When a new partner is admitted,it will dissolve the old partnership.

Which of the following methods of distributing income cannot be accomplished (cannot stand alone)?

Delta and Chen form a partnership and invest the following assets and liabilities In the journal provided prepare the entry to record the formation of the partnership.(Omit explanation. )

Briyanna and Greg form a partnership and invest the following assets and liabilities.Greg's building is subject to a $40,000 mortgage that is not assumed by the partnership. In the journal provided prepare the entry to record the formation of the partnership.(Omit explanation. )

Gains on the sale of assets in a liquidation are divided among partners according to the stated ratios.

Uses of Accounting Information and the Financial Statements

Measurement Concepts: Recording Business Transactions

Measuring Business Income: Adjusting the Accounts

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Receivables

Long-Term Assets

Current Liabilities and Fair Value Accounting

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting and Cost Concepts

Costing Systems: Job Order Costing

Costing Systems: Process Costing

Value-Based Systems: Activity-Based Costing and Lean Accounting

Cost-Volume-Profit Analysis

The Budgeting Process

Flexible Budgets and Performance Analysis

Standard Costing and Variance Analysis

Short-Run Decision Analysis

Capital Investment Analysis

Pricing Decisions, including Target Costing and Transfer Pricing

Quality Management and Measurement

Accounting for Investments

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