ACCOUNTING REVIEWER MIDTERM
QUIZ 1 PART 1
If the total contributed capital exceeds the
agreed capital with the new partner's investment
is the same as his capital contribution, then
the admission of new partner involved a –
NEGATIVE ASSET REVALUATION
If the agreed capital is equal to the total
contributed capital with the capital credit and
contribution of the old and new partners being
the same, there exists – NO ASSET REVALUATION
AND NO BONUS
If the capital credit of new partner is less
than his contribution with no adjustments in
asset values, then the admission resulted in a –
BONUS TO THE NEW PARTNER
Admission of a new partner by investment will
change total assets and total capital – TRUE
Dissolution does not always result to
liquidation – TRUE
Majority of the partners must consent before
admission of new partner by purchasing a capital
equity interest directly from one or more old
partner – FALSE
It is the amount of new capital set by the
partners for the partnership. It may be equal,
less than, more than the total contributions of
the partners – AGREED CAPITAL
It is the interest or equity of a partner in the
firm. It is computed by multiplying agreed
capital by the fraction of interest of a partner
– CAPITAL CREDIT
It is the necessary adjustment is asset values
upon admission of a new partner – ASSET
REVALUATION
For the answer in No. 9, it may be determined as
the difference between the – AGREED CAPITAL AND
CONTRIBUTED CAPITAL
Which of the following does not result in the
dissolution of a partnership? – MARRIAGE OF A
PARTNER
A new partner may be admitted into a partnership
by any of the following except – PURCHASING
PREFFERED STOCK OF THE PARTNERSHIP
If a new partner purchase his interest from an
old partner, the only entry on the partnership
books is a credit to the purchaser's capital
account with a debit to the – SELLING PARTNER’S
CAPITAL ACCOUNT
In admission of new partner, either by
investment or purchase, when there is asset
revaluation, usually the new partner's capital
contribution is less than the capital credit –
FALSE
QUIZ 1 PART 2
A.
Carmen, Capital – 40,000
Centeno, Capital – 20,000
Corrales, Capital – 60,000
B.
Other Assets – 120,000
Carmen, Capital – 5,333.33
Centeno, Capital – 5,333.33
Corrales, Capital – 120,000
C.
Cash – 120,000
Other Assets – 120,000
Carmen, Capital – 72,000
Centeno, Capital – 48,000
Corrales, Capital – 120,000
D.
Cash – 120,000
Carmen, Capital – 36,000
Centeno, Capital – 24,000
Corrales, Capital – 180,000
E.
Cash – 160,000
Carmen, Capital – 24,000
Centeno, Capital – 16,000
Corrales, Capital – 120,000
F.
Cash – 100,000
Carmen, Capital – 9,000
Centeno, Capital – 6,000
Corrales, Capital – 85,000
G.
Cash – 110,000
Other Assets – 90,000
Carmen, Capital – 54,000
Centeno, Capital – 36,000
Corrales, Capital – 110,000
H.
Cash – 160,000
Carmen, Capital – 12,000
Centeno, Capital - 8,000
Corrales, Capital – 140,000
I.
Cash – 96,000
Carmen, Capital – 9,600
Centeno, Capital – 6,400
Corrales, Capital – 112,000
J.
Cash – 60,000
Corrales, Capital – 60,000
QUIZ 2 PART 1
Under this assumption, there is a bonus from the
remaining partners and a positive asset
revaluation - SETTLEMENT TO RETIRING PARTNER IS
MORE THAN THE CAPITAL INTEREST
Asset revaluation method is only applicable if
there is a difference on the retiring partner's
interest and the settlement of the partnership –
TRUE
When the retiring partner's interest is sold to
the partnership at book value, the total capital
of the partnership remains the same - FALSE
Accounting for the sale of a retiring partner's
interest to the continuing partners is the same
as sale to the partnership - FALSE
When a partnership purchases the interest of a
retiring partner at less than book value, there
must be a - BONUS TO REMAINING PARTNERS/NEGATIVE
ASSET REVALUATION OR BOTH
When the partnership purchases a retiring
partner's interest, the settlement to the
retiring partner includes the following, except;
- DEPRECIATION EXPENSE
Closing of the books of the partnership even if
there is stipulation that the books need not be
closed - FALSE
Roldan is retiring today, April 22 from the
partnership. RFS Partnership has a reported net
income of 50,000php as of March 31. Which
statement is true? - 50,000PHP NET PROFIT PLUS
THE NET PROFIT FROM APRIL 1-22 SHOULD BE
DISTRIBUTED
In order to arrive at the adjusted interest of
the retiring partner, loans from the partnership
is deducted from the retiring partner's capital
- TRUE
The sale of interest to new partner or
continuing partners - HAS NO EFFECT ON THE TOTAL
PARTNERSHIP CAPITAL
A partner retires from the partnership and the
final settlement is more than his capital
interest. Under the bonus method, the excess -
REDUCES THE CAPITAL BALANCES OF THE REMAINING
PARTNERS
The withdrawal of a partner of his interest at
more than book value results in a - BONUS FROM
REMAINING PARTNERS
A partner who withdraws his interest at book
value receives assets - EQUAL TO HIS CAPITAL
INTEREST
When Alcantara retired from the partnership with
Bores and Cruz, the final interest, or the cash
settlement, is less than Alcantara's capital
balance. Under the bonus method, the difference
- INCREASES THE CAPITAL BALANCES OF BORES AND
CRUZ
A partner may withdraw his interest at an amount
equal to all of the following except at - FUTURE
EXPECTED VALUE
