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AFAR

AFAR
48問 • 1年前
  • Mark Anthony Germono
  • 通報

    問題一覧

  • 1

    AFAR topic covers:

    Formation, Operations, Dissolution, Liquidation

  • 2

    Topics under Liquidation

    Lump-sum method, Installment method

  • 3

    Definition of Partnership

    It consists of two or more persons, Bind themselves to contribute money, property, or service to a common fund., Intention is to divide the profits.

  • 4

    A primary advantage of the partnership form of entity is ease of formation.

    Partnership Formation

  • 5

    Contributed Asset

    Agreed value, Fair market value, Book value

  • 6

    Valuation of contributions:

    Contributed Assets, Liabilities

  • 7

    If the liability is to be paid personally by the partner, it will not be assumed by the partnership.

    True

  • 8

    Any liability assumed by the partnership will be included in the partnership books.

    True

  • 9

    For the liabilities, if it is not assumed, the reason is novation is presumed

    False

  • 10

    The amount of capital that is based on contribution of the partners.

    Total Contributed Capital (TCC)

  • 11

    The amount of capital that is agreed upon by the partners.

    Total Agreed Capital (TAC)

  • 12

    What is/are wrong about Capital credit

    Total agreed capital / capital interest ratio

  • 13

    This is used when any of the partners, needs to invest or withdraw to conform with the partnership agreement.

    NET INVESTMENT METHOD

  • 14

    this is a transfer of capital from one or more partner to another partner. The total contributed capital is equal to the total agreed capital.

    BONUS METHOD

  • 15

    Methods to be used in Partnership Formation

    Net Investment Method, Bonus Method

  • 16

    This is the framework within which the partners are to operate or conduct partnership business.

    Partnership agreement

  • 17

    If the partnership assumes a liability of a partner, in recording in the new partnership books, it involves a

    Debit capital account of that partner

  • 18

    If a certain asset is contributed to the partnership, and in the absence of the agreed value, when recording that certain asset in the partnership books, it is valued at

    Fair market value

  • 19

    If the partners decide to adjust their initial capital to conform to their profit/loss ratio, the total capital balance of the partnership before and after adjustment is the

    Bonus Method

  • 20

    Which of the following is not a characteristic of most partnership?

    Limited liability

  • 21

    Which of the following is not a characteristic of the proprietary theory that influences accounting for partnerships?

    A partnership is characterized by limited liability.

  • 22

    An advantage of the partnership as a form of business organization would be

    A partnership is created by mere agreements of the partners.

  • 23

    Which of the following statements is correct with respect to a limited partnership?

    A general partner may be a secured creditor of the limited partnership.

  • 24

    Partnership capital and drawings accounts are similar to the corporate

    Paid in capital, retained earnings, and dividends accounts.

  • 25

    When property other than cash is invested in a partnership, at what amount should the noncash property be credited to the contributing partner's capital account?

    Fair value at the date of contribution.

  • 26

    Which of the following transactions shall not affect the capital balance of a partner?

    Advances made by the partnership to a partner.

  • 27

    Which of the following accounts is not a receivable from a partner?

    Loans from partner

  • 28

    Transactions between and among the partners are

    Not recorded in the partnership books

  • 29

    Causes of Partnership Dissolution

    Admission of a new partner, Withdrawal, Retirement, or Death of a Partner, Incorporation of a partnership

  • 30

    Is the change in the relation of the partners caused by any partners ceasing to be associated in the carrying on as distinguished from the winding up of the business.

    Partnership Dissolution

  • 31

    It is a point in time when the partners cease to carry on the business together.

    Partnership Dissolution

  • 32

    The partnership is not terminated, but continues until the winding up of partnership affairs is completed.

    Partnership Dissolution

  • 33

    An existing partnership may be admitting a new partner without the consent of all the partners.

    False

  • 34

    Which of the following statements is correct when a new partner is admitted to an existing partnership by purchasing a portion of a capital interest of an existing partner?

    It will just result to credit of capital of newly admitted partner with corresponding debit to capital of the selling partner.

  • 35

    In the absence of other relevant data, when a new partner is admitted in an existing partnership through the acquisition of capital interest of incumbent partners, which is always true?

    The total capital of the partnership will not change despite the admission of a new partner.

  • 36

    Under GAAP, what is the most valid reason for the incremental credit to the capital of a newly admitted partner in addition to his properly valued contributed capital?

    Capital bonus coming from existing partners

  • 37

    When admitting a new partner into an existing partnership, and the total agreed capital is greater than the total contributed capital, the difference shall be

    Allocated to the old partners based on profit and loss ratio

  • 38

    In case of retirement of an existing partner, which of the following scenario will result to an asset revaluation upward?

    When the retiring partner receives more than his capital balance and results in an increase in the capital balance of the remaining partners.

  • 39

    Which of the following statements pertains to partnership dissolution?

    It refers to the change in the relation of the partners caused by any partner ceasing to be associated in the carrying on of the partnership.

  • 40

    Which of the following statements is correct when a new partner is admitted to an existing partnership by purchasing a portion of a capital interest of an existing partner?

    It will just result to credit of capital of newly admitted partner with corresponding debit to capital of the selling partner.

  • 41

    Which of the following statements is true with regard to a withdrawing partner?

    A bonus may be paid to the retiring partner

  • 42

    Which of the following results in dissolution of a partnership?

    The withdrawal of a partner from a partnership.

  • 43

    If a new partner acquires a partnership interest directly from the partners rather than from the partnership itself

    The existing partners' capital accounts should be reduced and the new partner's account increased.

  • 44

    Which of the following best characterizes the bonus method of recording a new partner's investment in a partnership?

    Assuming that recorded assets are properly valued; the book value of the new partnership is equal to the book value of the previous partnership and the investment of the new partner.

  • 45

    The distribution of profit or loss is always based on the partnership agreement.

    True

  • 46

    A stipulation which excludes one or more partners from any share in the profits or losses is not void.

    False

  • 47

    Distribution of Profits as to Capitalist Partner

    Both are true

  • 48

    Distribution of Losses as to Capitalist Partner

    2 is not true

  • FAR Quizzers For Post Test And Term Examination

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    問題一覧

  • 1

    AFAR topic covers:

    Formation, Operations, Dissolution, Liquidation

  • 2

    Topics under Liquidation

    Lump-sum method, Installment method

  • 3

    Definition of Partnership

    It consists of two or more persons, Bind themselves to contribute money, property, or service to a common fund., Intention is to divide the profits.

  • 4

    A primary advantage of the partnership form of entity is ease of formation.

    Partnership Formation

  • 5

    Contributed Asset

    Agreed value, Fair market value, Book value

  • 6

    Valuation of contributions:

    Contributed Assets, Liabilities

  • 7

    If the liability is to be paid personally by the partner, it will not be assumed by the partnership.

    True

  • 8

    Any liability assumed by the partnership will be included in the partnership books.

    True

  • 9

    For the liabilities, if it is not assumed, the reason is novation is presumed

    False

  • 10

    The amount of capital that is based on contribution of the partners.

    Total Contributed Capital (TCC)

  • 11

    The amount of capital that is agreed upon by the partners.

    Total Agreed Capital (TAC)

  • 12

    What is/are wrong about Capital credit

    Total agreed capital / capital interest ratio

  • 13

    This is used when any of the partners, needs to invest or withdraw to conform with the partnership agreement.

    NET INVESTMENT METHOD

  • 14

    this is a transfer of capital from one or more partner to another partner. The total contributed capital is equal to the total agreed capital.

    BONUS METHOD

  • 15

    Methods to be used in Partnership Formation

    Net Investment Method, Bonus Method

  • 16

    This is the framework within which the partners are to operate or conduct partnership business.

    Partnership agreement

  • 17

    If the partnership assumes a liability of a partner, in recording in the new partnership books, it involves a

    Debit capital account of that partner

  • 18

    If a certain asset is contributed to the partnership, and in the absence of the agreed value, when recording that certain asset in the partnership books, it is valued at

    Fair market value

  • 19

    If the partners decide to adjust their initial capital to conform to their profit/loss ratio, the total capital balance of the partnership before and after adjustment is the

    Bonus Method

  • 20

    Which of the following is not a characteristic of most partnership?

    Limited liability

  • 21

    Which of the following is not a characteristic of the proprietary theory that influences accounting for partnerships?

    A partnership is characterized by limited liability.

  • 22

    An advantage of the partnership as a form of business organization would be

    A partnership is created by mere agreements of the partners.

  • 23

    Which of the following statements is correct with respect to a limited partnership?

    A general partner may be a secured creditor of the limited partnership.

  • 24

    Partnership capital and drawings accounts are similar to the corporate

    Paid in capital, retained earnings, and dividends accounts.

  • 25

    When property other than cash is invested in a partnership, at what amount should the noncash property be credited to the contributing partner's capital account?

    Fair value at the date of contribution.

  • 26

    Which of the following transactions shall not affect the capital balance of a partner?

    Advances made by the partnership to a partner.

  • 27

    Which of the following accounts is not a receivable from a partner?

    Loans from partner

  • 28

    Transactions between and among the partners are

    Not recorded in the partnership books

  • 29

    Causes of Partnership Dissolution

    Admission of a new partner, Withdrawal, Retirement, or Death of a Partner, Incorporation of a partnership

  • 30

    Is the change in the relation of the partners caused by any partners ceasing to be associated in the carrying on as distinguished from the winding up of the business.

    Partnership Dissolution

  • 31

    It is a point in time when the partners cease to carry on the business together.

    Partnership Dissolution

  • 32

    The partnership is not terminated, but continues until the winding up of partnership affairs is completed.

    Partnership Dissolution

  • 33

    An existing partnership may be admitting a new partner without the consent of all the partners.

    False

  • 34

    Which of the following statements is correct when a new partner is admitted to an existing partnership by purchasing a portion of a capital interest of an existing partner?

    It will just result to credit of capital of newly admitted partner with corresponding debit to capital of the selling partner.

  • 35

    In the absence of other relevant data, when a new partner is admitted in an existing partnership through the acquisition of capital interest of incumbent partners, which is always true?

    The total capital of the partnership will not change despite the admission of a new partner.

  • 36

    Under GAAP, what is the most valid reason for the incremental credit to the capital of a newly admitted partner in addition to his properly valued contributed capital?

    Capital bonus coming from existing partners

  • 37

    When admitting a new partner into an existing partnership, and the total agreed capital is greater than the total contributed capital, the difference shall be

    Allocated to the old partners based on profit and loss ratio

  • 38

    In case of retirement of an existing partner, which of the following scenario will result to an asset revaluation upward?

    When the retiring partner receives more than his capital balance and results in an increase in the capital balance of the remaining partners.

  • 39

    Which of the following statements pertains to partnership dissolution?

    It refers to the change in the relation of the partners caused by any partner ceasing to be associated in the carrying on of the partnership.

  • 40

    Which of the following statements is correct when a new partner is admitted to an existing partnership by purchasing a portion of a capital interest of an existing partner?

    It will just result to credit of capital of newly admitted partner with corresponding debit to capital of the selling partner.

  • 41

    Which of the following statements is true with regard to a withdrawing partner?

    A bonus may be paid to the retiring partner

  • 42

    Which of the following results in dissolution of a partnership?

    The withdrawal of a partner from a partnership.

  • 43

    If a new partner acquires a partnership interest directly from the partners rather than from the partnership itself

    The existing partners' capital accounts should be reduced and the new partner's account increased.

  • 44

    Which of the following best characterizes the bonus method of recording a new partner's investment in a partnership?

    Assuming that recorded assets are properly valued; the book value of the new partnership is equal to the book value of the previous partnership and the investment of the new partner.

  • 45

    The distribution of profit or loss is always based on the partnership agreement.

    True

  • 46

    A stipulation which excludes one or more partners from any share in the profits or losses is not void.

    False

  • 47

    Distribution of Profits as to Capitalist Partner

    Both are true

  • 48

    Distribution of Losses as to Capitalist Partner

    2 is not true