ACC 206 Week 4 Quiz Chapter 12 -
Multiple Choice Question 83
If the partnership agreement specifies salaries to partners, interest on partners' capital, and the remainder on a fixed ratio, and partnership net income is not sufficient to cover both salaries and interest,
Multiple Choice Question 57
Which of the following statements is incorrect regarding partnership agreements?
Multiple Choice Question 130
When a partnership interest is purchased
Multiple Choice Question 111
In the liquidation process, if a capital account shows a deficiency
Multiple Choice Question 79
A partner's share of net income is recognized in the accounts through
Multiple Choice Question 75
Partners Cantor and Dickens have capital balances in a partnership of $160,000 and $240,000, respectively. They agree to share profits and losses as follows:
As salaries $40,000 $48,000
As interest on capital at the beginning of the year 10% 10%
Remaining profits or losses 50% 50%
If net loss for the year was $8,000, what will be the distribution to Dickens?
Multiple Choice Question 115
In liquidation, balances prior to the distribution of cash to the partners are: Cash $900,000; Peterson, Capital $420,000; Laney, Capital $390,000, and Howell, Capital $90,000. The income ratio is 6:2:2, respectively. How much cash should be distributed to Peterson?
Multiple Choice Question 113
Mandy, Annie, and Tammy formed a partnership with income-sharing ratios of 50%, 30%, and 20%, respectively. Cash of $300,000 was available after the partnership’s assets were liquidated. Prior to the final distribution of cash, Mandy’s capital balance was $200,000, Annie’s capital balance was $150,000, and Tammy had a capital deficiency of $50,000. Assuming Tammy contributes cash to match her capital deficiency, Mandy should receive
Multiple Choice Question 119
Use the following account balance information for Granobfin Partnership with income ratios of 2:4:4 for Granger, Noble, and Finn, respectively.
Assets Liabilities and Owner’s Equity
Cash $54,000 Accounts payable $126,000
Accounts Granger, Capital $138,000
receivable 132,000 Noble, Capital 48,000
Inventory 438,000 Finn, Capital 312,000
Assume that, as part of liquidation proceedings, Granobfin sells its noncash assets for $510,000. The amount of cash that would ultimately be distributed to Finn would be
Multiple Choice Question 65
Brian and Sandy are forming a partnership. Brian will invest a truck with a book value of $10,000 and a fair value of $14,000. Sandy will invest a building with a book value of $30,000 and a fair value of $42,000 with a mortgage of $15,000. At what amount should the building be recorded?