Podcast
Questions and Answers
How is the Cash account of the partnership affected when a partner invests cash?
How is the Cash account of the partnership affected when a partner invests cash?
- Credited
- No effect
- Debited (correct)
- Depends on the amount invested
What is the primary form of organization when two or more individuals engage as co-owners?
What is the primary form of organization when two or more individuals engage as co-owners?
- Corporation
- Sole proprietorship
- Partnership (correct)
- Limited Liability Company
What happens to the partner's capital account when an asset other than cash is invested in the partnership?
What happens to the partner's capital account when an asset other than cash is invested in the partnership?
- Debited
- Depends on the market value of the asset
- Credited (correct)
- No effect
In what situation would a partner's capital account be credited for the difference between the market value of the asset invested and liabilities assumed?
In what situation would a partner's capital account be credited for the difference between the market value of the asset invested and liabilities assumed?
Which form of organization is popular among personal service enterprises and in the legal and public accounting professions?
Which form of organization is popular among personal service enterprises and in the legal and public accounting professions?
What is a capital interest in a partnership?
What is a capital interest in a partnership?
What does the capital account of a partner represent?
What does the capital account of a partner represent?
When is the capital account of a partner increased?
When is the capital account of a partner increased?
In what form is compensation for services provided to a partner?
In what form is compensation for services provided to a partner?
How are guaranteed payments for services and capital treated by a partnership?
How are guaranteed payments for services and capital treated by a partnership?
When is the capital account of a partner decreased?
When is the capital account of a partner decreased?
What happens to the Drawing account when a partner makes a cash withdrawal received as an allowance?
What happens to the Drawing account when a partner makes a cash withdrawal received as an allowance?
What is included in the net income/loss distribution entry when books are closed at year end?
What is included in the net income/loss distribution entry when books are closed at year end?
Which of the following is not a situation where the capital account of a partner is increased?
Which of the following is not a situation where the capital account of a partner is increased?
What is considered as guaranteed payments in a partnership?
What is considered as guaranteed payments in a partnership?
How are salary and interest allowances recorded in the capital account of a partner?
How are salary and interest allowances recorded in the capital account of a partner?
What is the primary purpose of a cash flow statement?
What is the primary purpose of a cash flow statement?
Who is interested in assessing a company's ability to repay?
Who is interested in assessing a company's ability to repay?
Which International Accounting Standard deals with cash flow statements?
Which International Accounting Standard deals with cash flow statements?
What does the cash flow statement analyze in terms of activities?
What does the cash flow statement analyze in terms of activities?
Who needs to know whether the organization will be able to cover payroll and other immediate expenses?
Who needs to know whether the organization will be able to cover payroll and other immediate expenses?
What is the concern of the cash flow statement as an analytical tool?
What is the concern of the cash flow statement as an analytical tool?
What is the primary purpose of a cash flow statement?
What is the primary purpose of a cash flow statement?
Which entity mandated that firms provide cash flow statements?
Which entity mandated that firms provide cash flow statements?
What did the manager of Dowlais Iron Company create to explain the lack of funds for investment?
What did the manager of Dowlais Iron Company create to explain the lack of funds for investment?
What does the cash flow statement exclude based on accrual basis accounting?
What does the cash flow statement exclude based on accrual basis accounting?
What was the new financial statement created by the manager of Dowlais Iron Company known as?
What was the new financial statement created by the manager of Dowlais Iron Company known as?
Which financial statement reveals the quality of a company's earnings?
Which financial statement reveals the quality of a company's earnings?
What does the cash flow statement help predict?
What does the cash flow statement help predict?
What did the Financial Accounting Standards Board (FASB) define rules for in 1973?
What did the Financial Accounting Standards Board (FASB) define rules for in 1973?
What was common before accrual basis financial statements?
What was common before accrual basis financial statements?
What was excluded by the cash flow statement based on accrual basis accounting?
What was excluded by the cash flow statement based on accrual basis accounting?
