27 Statement I: When a partner sells an interest to a new partner at an amount that exceeds the carying amount of the equity sold, the difference is recognized as a personal gain of the selling partner from the transaction. Statement II: The amount of net assets invested of a new partner into an existing partnership is not always equal to the amount credited to his capital account. O True, true False, false False, true

27 Statement I: When a partner sells an interest to a new partner at an amount that exceeds the carying amount of the equity sold, the difference is recognized as a personal gain of the selling partner from the transaction. Statement II: The amount of net assets invested of a new partner into an existing partnership is not always equal to the amount credited to his capital account. O True, true False, false False, true

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter10: Partnerships: Formation, Operation, And Basis

Section: Chapter Questions

Problem 6BCRQ

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14 A new partner is admitted to an existing partnership. As a result of admission, the capital balances of incumbent partners increase while the contributed capital of the new partner is less than his capital credit. Which of the following is the best explanation? Group of answer choices a. Bonus has been given by the incumbent partners to the new partner. b. Bonus has been given by the incumbent partners to the new partner and revaluation of existing assets of old partnership has been recognized. c. Bonus has been given by the new partner to incumbent partners and impairment loss of existing assets of old partnership has been recognized. d. Revaluation of existing assets of old partnership has been recognized.
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
S1: An advance to partnership by a partner with the assumption of its repayment by the partnership increases the capital account of the partnership. S2: Drawing account is debited for obligations of the partnership assumed by a partner a. both statements are true b. both statements are false c. only S1 is true d. only S1 is false.
1. S1: In a partnership, at least one partner is required to be a/an limited partner in order to ensure partnership creditors will be paid and protectedS2: Unpaid liabilities should be included in computing for the total loss attributed to the partners. * Both statements are false S1 True; S2 False S2 True; S1 False Both statements are true 2. [S1] Forming a partnership requires two or more people agreeing to be partners contributing all their personal properties. [S2] Oral agreements of partners are not allowed. * Statement 2 is true. Both statements are true. Both statements are false. Statement 1 is true.
Waldhart X -than-cash-into-a-partnership-ther 0165345 When a partner invests assets other th Subscribe tou 25. When a partner invests assets other than cash into a partnership, these assets should be listed on the statement of financial position at a. their carrying (book) value. b. their original cost. C. their fair market value. d. the value the investing partner assigns to them. ep-by-step answer
49 When a partner retires from the partnership and is given more cash than his adjusted capital, how should the difference be treated? Group of answer choices The difference should be credited to all remaining partners based on their remaining profit or loss ratio The difference should be debited to all remaining partners based on their remaining profit or loss ratio The difference should be accounted for as an additional partnership expense None of the above
S1: In a partnership, at least one partner is required to be a/an limited partner in order to ensure partnership creditors will be paid and protected S2: Unpaid liabilities should be included in computing for the total loss attributed to the partners. S1 True; S2 FalseBoth statements are trueS2 True; S1 FalseBoth statements are false
S1: Loans receivable of the partnership from the partners are deducted from the capital balance of a partnerto compute his total interest.S2: In elimination of capital deficiency, if the deficient partner has an excess personal assets over personalliabilities, the deficient partner directly invests additional cash to eliminate his capital deficiencya. Both trueb. Both Falsec. S1 is true, S2 is falsed. S1 is false, S2 is true
I. It is possible to invests assets into the partnership and be given zero capital credit.II. Total contributed capital is the sum of the capital balances of the old partners and the actualinvestment of the new partner. It should always equal the new partnership capital. A. TRUE; TRUEB. TRUE; FALSEC. FALSE; TRUED. FALSE; FALSE
1. S1: Partnership profits and losses (including bonuses and revaluations) are allocated in accordance with their Profit and Loss Ratio. S2: If only the share in the profits have been established in the articles of partnership, then the share in the losses must be in accordance with their profit ratio. a. S2 True; S1 False b. Both are false c. S1 True; S2 False d. Both are true 2. If the total contributed capital of the partnership is greater than the total agreed capital, which of the following may arise: a. Overvaluation of Assets b. All of the choices c. Undervaluation of Assets d. Goodwill
S1: In a partnership, at least one partner is required to be a/an limited partner in order to ensure partnership creditors will be paid and protected S2: Unpaid liabilities should be included in computing for the total loss attributed to the partners. * A. Both statements are true B. s1 True; S2 False C. S2 True; S1 False D. Both statements are false S1: Joint Control is present if tow ore more parties have greater than 50% Control.S2: One Party has more than 50% in a joint arrangement * A. Both statements are false B. Both statements are true C. S2 True; S1 False D. s1 True; S2 False S1: If the total contributed capital of THE partnership is greater than the total agreed capital, it is possible that a goodwill be recognized or an undervaluation of asset occurred.S2: Noncash assets sold by the partnership will prioritize payment of Creditors * A. Both statements are false B. s1 True; S2 False C. Both statements are true D. S2 True; S1 False
S1: In a partnership liquidation, if a partner's personal liabilities exceed personal assets then the partner is personally insolvent.S2: Cash Priority Program is the schedule prepared to determine the amount of payment prioritized to each partners.? A.Both statements are false B. s1 True; S2 False C. S2 True; S1 False D. Both statements are true This is a type of arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement? A. Joint entry B. Joint undertaking C. Joint operation D. Joint venture Merchandise invested by an entity under a joint operation agreement should include an entry of? A. Debit to Joint Operation under the books of the Joint Operators other than the party who invested B. Credit to Joint Operation under the books of the party investing the merchandise C. Credit to merchandise Inventory of all the Joint perators D. Credit to merchandise inventory of the Joint Operator who contributed merchandise