The Accounting Cycle of a Partnership and sole proprietorship are generally similar EXCEPT for:O Maintaining separate capital and drawing accounts for each partnersAnalyzing business documents and recording of the business transactionsO Recording adjusting entriesPreparing post-closing trial balance

The accounting cycle includes those steps that are repeated after end of each accounting period. 1.…

The Accounting Cycle of a Partnership and sole proprietorship are generally similar EXCEPT for: Maintaining separate capital and drawing accounts for each partners O Analyzing business documents and recording of the business transactions O Recording adjusting entries O Preparing post-closing trial balance

The Accounting Cycle of a Partnership and sole proprietorship are generally similar EXCEPT for: Maintaining separate capital and drawing accounts for each partners O Analyzing business documents and recording of the business transactions O Recording adjusting entries O Preparing post-closing trial balance

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter14: Partnerships And Limited Liability Entities

Section: Chapter Questions

Problem 1BD

See similar textbooks

Similar questions

A well written partnership agreement should include each of the following except ________. A. how to settle disputes B. the name of the partnership C. division of responsibilities D. Partners individual tax rate
Which one of the following statement is not correct on preparation of partnership final accounts? a. Adjustments will be recorded have dual effects in the income statement and statement of financial position b. Preparation of income statement is same as sole proprietorship business c. Net profit from income statement will be transferred to partners' capital account d. Accounting principles are same as sole proprietorship business
Which one of the following statement is correct on preparation of partnership final accounts? a. Net profit from income statement will be transferred to partners'capital account b. Accounting principles are different from sole proprietorship business c. Preparation of income statement is not same as sole proprietorship business d. Adjustments will have dual effects in the income statement and statement of financial position
What is a key distinction in the presentation of the Income Statement in a Partnership? O presentation of Gross Profit it includes a presentation of how profit is divided among partners O presentation of notes in the Income Statement classification of expenses into Selling and Administrative expenses
Accounting In the liquidation of a partnership, a loan from a partner a. Will be paid off at the same time as payment of other liabilities of the partnership b. Will be paid off before distribution of cash to partners for their capital investments c. Will be closed to the partner's drawing account d. Will be written off
The objective of preparation of income statement of partnership is: a. To show how net profit has been distributed among partners b. To show the financial position of business c. To show the ratio of capital of partners d. To show the income and expenses of the partnership firm
Which of the following statements is correct with regard to drawing accounts that may be used by a partnership? Group of answer choices A. Drawing accounts establish the amount that may be taken from partnership by a partner in a given time period B. Drawing accounts are closed to the partners’ capital accounts at the end of the accounting period C. Drawing accounts appear on the balance sheet as a contra-equity account D. Drawing accounts are similar to Retained Earnings in a corporation.
Recording of adjusting entries in partnership firm ensure that: a. The goodwill received by each partner b. The drawings allowed to each partner c. Cash basis principle is followed d. Both revenue recognition and matching principles are followed
Closing entries of a partnership include entries to a. record distribution of cash to the partner b. eliminate the capital accounts and record distribution of asset to partners to effect the partnership termination and liquidation c. close income and expense accounts to the income summary account; and close the profit or loss to the drawing accounts d. close the profit or losses and dividends declared accounts to retained earnings
The objective of preparing Income Statement of partnership is: a. To show the interest on capital of each partner b. To show drawings of partnership firm c. To show the capital of each partner d. To show the net profit or loss of partnership firm
The accounting treatment of capital invested in partnership business will be? a. Debited to cash account b. Credited to cash account c. Debited to profit and loss appropriation account d. Debited to partners' capital account
The objective of preparing Income Statement of partnership is: a. To show the interest on capital of each partner O b. To show drawings of partnership firm O c. To show the net profit or loss of partnership firm O d. To show the capital of each partner The purpose of preparation of Profit and loss appropriation account is: O a. To know the balance of drawings of each partner O b. To know the balance of capital of each partner C. To know the share of profit or loss of each partner O d. To know the balance of goodwill of each partner