midterm exam FAR

40問 • 2年前

問題一覧

A partnership in which at least one partner is personally liable is called

Limited Partnership

A contract of partnership is consensual. It is created by the agreement of the partners which may be constituted in any form, such as

either oral or written

Which of the following affects the partner's capital account?

All of the above

A loan extended by the partnership to a partner is recorded as a

receivable from the partner

Under the bonus method, the asset contribution of the partner receiving a bonus is debited

at fair value

A partner who contributes both services and cash or other non-cash items is called

Both Industrial and Capitalist

A partnership for which no term is specified and is not formed for a particular undertaking or venture

Partnership at will

A partner who takes charge of the winding up of the partnership affairs.

Liquidating Partner

An incentive normally given to the managing partner in recognition of entrepreneurial skill or ability.

Bonus

A new partner may be admitted by

Either purchase of interest or asset contribution

Upon admission of a new partner by investment, if the old partners' capital accounts were debited, which of the following is true?

Both

A kind of partner who contributes cash into the common fund.

Capitalist Partner

Under this method, the percentage of capital to be acquired by the new partner is multiplied on the capital balance(s) of the selling partner(s)

Book value method

If the total contributed capital exceeds the agreed capital with the new partner's investment is the same as his capital credit, then the admission of the new partner involved

negative asset revaluation

If the capital credit of the new partner is less than his contribution with no changes in the assets' values, then the admission resulted in a

bonus to old partners

It is the change in the relation of the partners caused by any partner being disassociated from the business

Dissolution

At the time of partnership formation, cash is valued at its

Face amount

Net Realizable Value (NRV) is the difference between

selling price and cost to sell

The following are characteristics of a partnership except

Unlimited life

Which of the following is one of the essential elements of a contract?

cause

A classification of partnership wherein the assets to be contributed by each partner are identified specified in their agreement?

particular partnership

Which of the following is wrong about limited partnership?

none

If there's no agreement on how profit will be divided among capitalist partners, the profit will be divided based on their ???? capital contributions.

original

A loan obtained by the partnership from a partner is recorded

payable to partner

When the total agreed capital of the old partners is different from its total contributed capital, which of the following may be true?

Either of the two

A partnership is registered with the

SEC

When is original capital the same as the beginning capital?

at first year of operation

What is the effect of the admission of a new partner in the total capital of the partnership?

By means of purchase, no effect

If CC of the old partners is greater than AC, with no adjustment in asset values, the admission resulted in a

bonus to new partner

Statement 1: Technically, dissolution is the same as liquidation. Statement 2: Partnership dissolution need not be recorded in the partnership books.

both false

Statement 1: A bonus exists when the capital account of a partner is credited for an amount greater than but not less than the total fair value of his net contributions. Statement 2: Each partner's capital account is credited for the fair value of his contributions.

both false

Statement 1: As compared to corporations, the formation of a partnership requires more formality. Statement 2: In partnership, the act of one partner is considered as the act of all partners.

2 true

Statement 1: If no profit or loss sharing ratio has been agreed upon, the partners shall share equally. Statement 2: Partnership dissolution and liquidation are the same.

both false

Statement 1: In admission of a new partner through purchase, any consideration paid or received by a partner is not recorded in the partnership books. Statement 2: Partnership dissolution does not necessarily terminate the business.

both true

.Statement 1: The adjustment to the assets and liabilities, as a result of asset revaluation, is allocated first to the existing partners before recording the admission of the new partner. Statement 2: Under investment in the partnership, the consideration paid by the new partner is recorded in the partnership books.

both true

Statement 1: Universal partnership of all profit is one in which the partners contribute, at the time of formation, all the properties which actually belong to each of them. Statement 2: Universal partnership of all present properties is one which comprises all that the partners may acquire by their industry or work during the existence of the partnership and usufruct of movable or immovable property which each of the partners may possess at the time of formation.

both false

Statement 1: The sale to a new partner of an old partner's interest in an existing partnership is a personal transaction between the selling partner and the buying partner. Statement 2: Any gain or loss as a result of admission of a new partner is recorded in the partnership books.

1 true

Statement 1: Unlike corporations, the partners are viewed as agents of the partnership. Statement 2: Partnership is the most common and simplest form of business.

1 true

Statement 1: If AC of the new partner is less than his/her CC, there is a bonus to old partners. Statement 2: If AC of the new partner is equal to his/her CC, there is no bonus.

both true

.Statement 1: Agreed capital may be equal to, more than or less than the total contributions of the partners. Statement 2: Contributed capital is also known as the new partnership capital.

1 true

Quiz I.T Week 3

nicollette claire · 34問 · 2年前

Quiz I.T Week 3