Question 1

Accounting for a partnership comes closer to accounting for a corporation than to accounting for a sole proprietorship.

Accepted Answer

A) True 
 B)False

Question 2

Unlimited liability refers to

Accepted Answer

A) a claim to the partners' personal assets by creditors if the partnership cannot pay its debts. 
B) the ability of any partner to bind the partnership to a business agreement as long as he or she acts within the scope of the company's normal operations. 
C) co-ownership of partnership property. 
D) the method of income distribution. 
A) a claim to the partners' personal assets by creditors if the partnership cannot pay its debts. 
B) the ability of any partner to bind the partnership to a business agreement as long as he or she acts within the scope of the company's normal operations. 
C) co-ownership of partnership property. 
D) the method of income distribution.

Question 3

Liabilities related to assets invested in a partnership by a new partner can be transferred to the partnership.

Accepted Answer

A) True 
 B)False

Question 4

A partner invests into a partnership a building with a $50,000 carrying value and $40,000 fair market value.The related mortgage payable of $25,000 is assumed by the partnership.The entry to record the investment in partnership is:

Accepted Answer

A)   
B)   
C)   
D) 
  
A)   
B)   
C)   
D)

Question 5

Connie and Marcos are partners who share profits in a ratio of 3:2,respectively,and have the following capital balances on September 30,20x5:
  The partners agree to admit Trevor to the partnership.Calculate the capital balances of each partner after the admission of Trevor,assuming that bonuses are recorded when appropriate for each of the following assumptions:
a.Trevor pays Connie $50,000 for 50 percent of her interest
b.Trevor invests $50,000 for a one-fourth interest in the partnership
c.Trevor invests $50,000 for a 30 percent interest in the partnership
d.Trevor invests $50,000 for a 20 percent interest in the partnership

Accepted Answer

The answer of Connie and Marcos are partners who share...

Question 6

A partnership agreement should include the method of distributing income and loss.

Accepted Answer

A) True 
 B)False

Accounting for a partnership comes closer to accounting for a corporation than to accounting for a sole proprietorship.

Unlimited liability refers to

Liabilities related to assets invested in a partnership by a new partner can be transferred to the partnership.

A partner invests into a partnership a building with a $50,000 carrying value and $40,000 fair market value.The related mortgage payable of $25,000 is assumed by the partnership.The entry to record the investment in partnership is:

A partnership agreement should include the method of distributing income and loss.

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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Exam 27: Accounting for Unincorporated Businesses

Accounting for a partnership comes closer to accounting for a corporation than to accounting for a sole proprietorship.

Unlimited liability refers to

Liabilities related to assets invested in a partnership by a new partner can be transferred to the partnership.

A partner invests into a partnership a building with a $50,000 carrying value and $40,000 fair market value.The related mortgage payable of $25,000 is assumed by the partnership.The entry to record the investment in partnership is:

A partnership agreement should include the method of distributing income and loss.

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

Filters