The Flat and Iron partnership agreement provides for Flat to receive a 20% bonus on profits before the bonus. Remaining profits and losses are divided between Flat and Iron in the ratio of 2 to 3, respectively. Which partner has a greater advantage when the partnership has a profit or when it has a loss?ProfitLoss

1 .In the Adel-Brick partnership, Adel and Brick had a capital ratio of 3:1 and a profit and loss ratio of 2:1, respectively. The bonus method was used to record Colter's admittance as a new partner. What ratio would be used to allocate, to Adel and Brick, the excess of Colter's contribution over the amount credited to Colter's capital account?

A Adel and Brick's new relative capital ratio. B Adel and Brick's old profit and loss ratio. C Adel and Brick's old capital ratio. D Adel and Brick's new relative profit and loss ratio.

题型: 单选题 提问时间: 2021-08-24

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2 .Kern and Pate are partners with capital balances of USD60,000 and USD20,000, respectively. Profits and losses are divided in the ratio of 60:40. Kern and Pate decided to form a new partnership with Grant, who invested land valued at USD15,000 for a 20% capital interest in the new partnership. Grant's cost of the land was USD12,000. The partnership elected to use the bonus method to record the admission of Grant into the partnership. Grant's capital account should be credited for:

A USD16,000 B USD19,000 C USD12,000 D USD15,000

题型: 单选题 提问时间: 2021-08-24

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3 .Cor-Eng Partnership was formed on January 2. Under the partnership agreement, each partner has an equal initial capital balance accounted for under the goodwill method. Partnership net income or loss is allocated 60% to Cor and 40% to Eng. To form the partnership, Cor originally contributed assets costing USD30,000 with a fair value of USD60,000 on January 2, while Eng contributed USD20,000 in cash. Drawings by the partners during the year totaled USD3,000 by Cor and USD9,000 by Eng. Cor-Eng's year-end net income was USD25,000.Eng's initial capital balance in Cor-Eng is closest to:

A USD60,000 B USD25,000 C USD20,000 D USD40,000

题型: 单选题 提问时间: 2021-08-24

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4 .Cor-Eng Partnership was formed on January 2. Under the partnership agreement, each partner has an equal initial capital balance accounted for under the goodwill method. Partnership net income or loss is allocated 60% to Cor and 40% to Eng. To form the partnership, Cor originally contributed assets costing USD30,000 with a fair value of USD60,000 on January 2, while Eng contributed USD20,000 in cash. Drawings by the partners during the year totaled USD3,000 by Cor and USD9,000 by Eng. Cor-Eng's year-end net income was USD25,000.Cor's share of Cor-Eng's net income is:

A USD15,000 B USD12,000 C USD12,500 D USD7,800

题型: 单选题 提问时间: 2021-08-24

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5 .The partnership agreement of Reid and Simm provides that interest at 10% per year is to be credited to each partner on the basis of weighted-average capital balances. A summary of Simm's capital account for the year ended December 31, is as follows:Balance, January 1 USD 140,000Additional investment, July 1 40,000Withdrawal, August 1 (15,000)Balance, December 31 165,000What amount of interest should be credited to Simm's capital account?

A USD16,500 B USD15,375 C USD17,250 D USD15,250

题型: 单选题 提问时间: 2021-08-24

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7 .Allen retired from the partnership of Allen, Beck and Chale. Allen's cash settlement from the partnership was based on new goodwill determined at the date of retirement plus the carrying amount of the other net assets. As a consequence of the settlement, the capital accounts of Beck and Chale were decreased. In accounting for Allen's withdrawal, the partnership could have used the:Bonus methodGoodwill method

A No; Yes B No; No C Yes; No D Yes; Yes

题型: 单选题 提问时间: 2021-08-24

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8 .Which of the following statements is true?I. In the formation of a partnership, assets are recorded at the lower of cost (book value) or fair market value.II. When a new partner is admitted to an existing partnership by "bonus," the new partner's capital account is always credited for the amount of the investment.III. According to the ABC partnership agreement, each partner is to receive a yearly salary of USD50,000. During Year 1, the partnership reported a net loss of USD20,000. In the year-end profit/loss distribution, a salary of USD50,000 should still be allocated to each partner.

A III only. B I and II only. C II and III only. D I only.

题型: 单选题 提问时间: 2021-08-24

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9 .A company recorded a decommissioning liability and recognized the amount recorded as part of the cost of the related property. After the property was fully depreciated, the decommissioning liability was reviewed and adjusted. How should this change in the decommissioning liability be recognized under IFRS?

A The change in the decommissioning liability is not recognized until it is settled. B The change in the liability is recognized in other comprehensive income. C The change in the liability is recognized in profit or loss. D The change in the liability is recognized as a change in the carrying amoun...

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10 .The following information pertains to the transfer of real estate pursuant to a troubled debt restructuring (considered to be an extraordinary event for Knob Co.) by Knob Co. to Mene Corp. in full liquidation of Knob's liability to Mene:Carrying amount of liability liquidatedUSD150,000Carrying amount of real estate transferred100,000Fair value of real estate transferred90,000What amount should Knob report as ordinary gain (loss) on transfer of real estate?

A (USD10,000) B USD0 C USD60,000 D USD50,000

题型: 单选题 提问时间: 2021-08-24

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