the absence of agreed profit distribution among partners, the most equitable way to distribute net income generated by the partnership business is to use the peso month verage capital ratio. True False
Q: Freddy runs a business selling clocks. He buys 614 clocks for $44 each (including GST) and sells for…
A: Australian GST The GST Rate in Australia is 10% Goods and services tax (GST) is a tax of 10% on most…
Q: Q.3.2 Record the packaging machine as it would appear in the asset register at 31 December 2021…
A: ASSET REGISTER VEHICLE : FORD ECOSPORT DATE COST DEPRECIATION ACCUMULATED DEPRECIATION CARRYING…
Q: he college you are attending has a very busy canteen. Students are allowed to place and pay for…
A: Cash Management and Control: It is the system of managing the cash inflows and outflows. Cash…
Q: Accounting BONUS MARK: A small manufacturing firm, 'G&N Ltd' makes whistles. During November 2,600…
A: The net income is calculated as difference between sales and total expenses.
Q: Year end inventory is valued at £215,000. However, there are several items included within year end…
A: Inventory: It includes all the finished goods available for sale to the ultimate customers and raw…
Q: g Statement of Cash Flows
A: Cash flow statement shows the cash inflow and cash outflow due to the operating activities,…
Q: firm has an average age of inventory of 60 days, an average collection period of 40 days, and an…
A: Operating cycle formula: Inventory period + average collection period Net operating cycle:…
Q: value is established on the bases of accepted accounting procedures. value is the amount that could…
A: Solution Concept Book value is the value that appears on the books of accounts . it is as per the…
Q: Ratio of liabilities to stockholders' equity The following data were taken from Alvarado Company's…
A: Liabilities to stockholders equity ratio = Total liabilities/Total stockholders equity
Q: Wright Corp. is considering the purchase of a new piece of equipment, which would have an initial…
A: Introduction:- Payback period is one of the capital budgeting tool. It identifies how much time…
Q: 3) Esme transfers land with a FMV of $900,000 to a newly formed corporation in exchange for all the…
A: Basis of an property means amount of investment in capital assets for the purpose of tax.
Q: 2,032,000 1,890,000 1,440,000 180,000 80,000
A: . Outstanding Checks have been added because the entity has already credited Bank a/c in books but…
Q: E12-10 In the EZ Co., the capital balances of the partners are J. Edie $40,000 and K. Zane 30,000.…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: From the following statements which one is not the correct classification of accounting theory
A: Accounting theory is the theory which is actually the set of guidelines, principles or in order…
Q: FIFO met
A: Given as, Material 3600 Labour 3400 Overheads 1000
Q: 3- Implementation of planned decisions and evaluating performance is classified as: a. Evaluation…
A: Planning is very important and initial step of business process. This shows what needs to be done,…
Q: What is financial assets designated at FVOCI? Why does an entity used it? How?
A: Here discuss about the details of financial assets which was segregated fair value through other…
Q: The Division of Partnership Net Income is a method of calculating how much earnings are attributable…
A: A partnership is a kind of business structure in which two or more people agree to carry out…
Q: Bonita Industries reported the following information for 2022: October November December…
A: A cash budget is prepared to estimate the total cash received and total cash disbursement. It is…
Q: Which of the following problems can be most ea client's year-end sales cutoff?
A: Sales revenue represents the revenue of the company by selling the products produced by the company.…
Q: In 2009, Bratz, Inc.’s net profit before tax was P35 million while its operating expenses was P31…
A: Profits after subtracting the GP's operational expenses are referred to as net profits. To compute…
Q: Question 22 options: A) to develop a personal code of ethical conduct about what is right and…
A: the ethical conflict is a problem in the decision making process between the two possible option…
Q: Problem 2) A profitable company making earth-moving equipment is considering an investment of…
A: The accounting approach used to disperse the cost of a tangible or physical asset over its useful…
Q: Kiwi company issued a 2.5% promissory note payable in 3 equal annual installments to purchase…
A: Introduction Note payable is a instrument and promissory note in which person agrees to pay certain…
Q: Paulis Kennel uses tenant-days as its measure of activity: an animal housed in the kennel for one…
A: A spending variance is the difference between the actual amount of a particular expense and the…
Q: Dark Inc. paid P72,000 to renew the only insurance policy for three years on March 1, 2021, the…
A: Prepaid insurance is the amount of insurance premium paid before it becomes due.
Q: true or false? Gains and losses are allocated over the interim period in the preparation of interim…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: Xyz ltd co. sold Land for $140,000 cash, purchased Equipment for $40,000 cash, and issued Bonds…
A: Cash flow from investing activity is a section of cash flow where all the transitions of cash…
Q: Pension benefits contributed by the employer affects both the projected benefit obligation and…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: Shipments of inventory to the branch may be billed at other than cost. When billing prices are above…
A: Introduction:- Branch Accounting is the different type of bookkeeping or accounting.…
Q: (Do not round e.g., 32.16)
A: The total cost of production of a good comprises of the total fixed cost of production and the total…
Q: A business registered as a barangay micro business enterprise received P400,000 in gross income from…
A: As per the Republic Act 9178: Barangay Micro Business Enterprises Act of 2002 the barangay business…
Q: On January 1, 2021, M Company granted 90,000 stock options to certain executives. The options are…
A: calculation of compensation income for 2022 are as follows
Q: Basil Company should reported unearned premium income at the end of December 31, 2022 of?
A:
Q: Maurice, single, has wages of $215,114 and net investment income of $40,000 in 2021. His AGI (MAGI)…
A: As per Internal Revenue Service, the net investment tax rate on the net investment income for…
Q: Boxer Inc. reported inventory at the beginning of the current year of $360,000 and at the end of the…
A: Formula: Inventory turnover = Cost of goods sold / Average inventory Where, Average inventory =…
Q: Over 120 days 50% tequirements: 1. If there were no other entries to the allowance for doubtful…
A: The balance of Accounts receivable and the allowance for doubtful debts for LOPEZ Inc. as on…
Q: Jan 1 Bought new machineries worth P80.000 in account. Jan 3 Purchased P50,000 worth of computer…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: gross
A: a) For the month of January, Mary's take-home salary would've been $14,560. To get at this figure,…
Q: Calculate the gross profit and the sales figures using the income statement approach.
A: Income statement approach refers to the approach which is used to determine the gross profit and it…
Q: Potential partners might not want to form a partnership because of the risk of having their personal…
A: The partnership is a form of business where two or more individuals agree to carry a business and…
Q: Pension benefits contributed by the employer affects both the projected benefit obligation and…
A: A projected benefit obligation (PBO) is an actuarial measurement of what a company will need at…
Q: erie Co. (CC) has the following for 20x5: e income gate investment income $450,000 60,000 nd income…
A: The answer has been mentioned below.
Q: On January 1, Carlo, Jamie, Roma, and Fe, formed CABLES Trading, a local partnership, with capital…
A: Partnership is an agreement between two or more partners where partners are agreed to work together…
Q: Harper Corporation recently sold a used machine for $50,000. The machine had a book value of $75,000…
A: Formula: Cash flow from the sale after tax = Sale value of the machine + Savings in tax where,…
Q: Stephen, a manager, believes that if his company's revenue hadn't increased last year, it wouldn't…
A: Revenue means the amount earned by selling the goods or services. Profit means the difference…
Q: Pinnocle Corporation has provided the following data from its activity-based costing system:…
A: Product Margin: There are four main types of profit margin: gross profit margin, which takes into…
Q: Lewis Corporation has two service departments: Data Processing and Administration/Personnel. The…
A: Lets understand the basics. In step method of allocation, service department cost is allocated to…
Q: A taxpayer engaged in manufacturing operations bought a machine with a salvage value of P50,000 and…
A: Hi student Since there are multiple questions, we will answer only one question. First question can…
Q: $40,000 6,000 Net income Depreciation 2,000 (800) 1,800 8,000 Increase in accounts receivable…
A: Net cash provided by Operating activities = Net Income + Depreciation expense - Increase in accounts…
Step by step
Solved in 2 steps
- For me to know if you can answer Partnership Operation problems, explain the detailed process of the following bases for division of profit: 1. Arbitrary Ratio 2. Capital Contribution Ratio 3. Salaries, Interest and Bonus Example: Arbitrary Ratio is simply multiplying the agreed ratio with the......Nonrecourse debt is generally allocated according to the profit-sharing ratios of the partnership. True or False True FalseQuestion: True or False 1) According to the Partnership Act, the profit of the partnership business will be shared equally irrespective of how much each partner has contributed as capital. reqiured: please answer this question by stating whether this statement is true or false.
- 1. In participation/partnership based contracts, __ is always subject to the ratio of investment while ___ distribution is based on pre-agreed ratio. Profit, Loss Loss, Loss Loss, Profit Profit, Profit 2. A Mudaraba is a non-binding contract. It means that Rab-ul-Maal or Mudarib, cannot terminate the partnership. True False 3. In Mudaraba profit is shared according to the pre-agreed proportion, while the loss has to be borne exclusively by the: Rabbul Maal Either Rabb ul Maal or Mudharib As per the agreed ratio between Rabbul Maal and Mudharib MudharibStatement : Non-cash contributions of the partners should be recorded at agreed value in the absence of fair market value. Statemernt i: Interest ratio is the means of dividing the profit and losses among the partners. 0 Both statements are incorrect O Both staterments are correct OOnly Statementls correct Only Statement ll is correct1. 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
- I. The use of average capital in distributing profits and losses results in equitable distribution thereof. II. When partners are entitled to salaries, they are to be credited for this even when the operation results in a loss. Group of answer choices a. BOTH STATEMENTS ARE FALSE b. ONLY THE 1ST STATEMENT IS FALSE c. BOTH STATEMENTS ARE TRUE d. ONLY THE 1ST STATEMENT IS TRUEIf there is a provision for division of profits but not losses in the partnership agreement, it is concluded that: O Losses should not be divided to the capital accounts, but matched against future earnings Losses should be divided equally O Losses should be divided using the same approach as division of profits O Losses should be allocated according to the ratio of capital account balancesI. The use of average capital in distributing profits and losses results in equitable distribution thereof. II. When partners are entitled to salaries, they are to be credited for this even when the operation results in a loss. a. ONLY THE 1ST STATEMENT IS TRUE b. ONLY THE 1ST STATEMENT IS FALSE c. BOTH STATEMENTS ARE FALSE d. BOTH STATEMENTS ARE TRUE
- What is the purpose of a partnership appropriation account? A to avoid disagreements between the partners B to calculate residual profits for division between partners C to calculate the profit sharing ratio D to determine the amount of partners’ salariesIn the absence of agreement as to distribution of profit, how shall the partnership profit be distributed to the partners? A. The industrial partner shall receive a share equivalent to the least share of a capitalist partner while the capitalist partners shall share based on capital contribution ratio. B. The industrial partner shall receive a just and equitable share and the remainder shall be distributed to the capitalist partners on the basis of capital contribution ratio. C. The profit shall be distributed on the basis of loss contribution ratio which may have been agreed upon by the partners. D. The profit shall be distributed equally to all partners including the industrial partner.7. The most equitable basis of distributing partnership profit by way of capital contributions is?A. beginning capitalB. ending capitalC. average capitalD. equally 8. In case the partnership makes profit, how will an industrial partner be given a share?A. what is just equitableB. equallyC. arbitrarilyD. proportion to capital contribution 9. Which of the following is not considered a legitimate expense of a partnership?A. Supplies used in the partnership’s officeB. Depreciation on assets contributed to the partnership by partnersC. Salaries for management hired to run the business D. Interest paid to partners based on their capital balances Kindly answer the questions correctly by choosing a letter and explain. Thank you.