Use the following options and match them with the descriptions. Has the most potential for conflict Get to keep all profits 1. Sole Proprietorship Limited Liability 2. Partnership owners can specialize 3. Corporation > >
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A: Below is the response given for true or false:
Q: partnership final accounts?
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Q: partnership final accounts?
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Q: 7. Which are advantages of a partnership? (Check all that apply) more flexibility with time than a…
A: Solution:- Partnership is the form of business organisation in which two or more people, known as…
Q: How can partnership profits and losses be allocated ?
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A: 1.
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Q: The General Partnership form of organization is subject to tax at the business level and again at…
A: The answer is FALSE
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The type of business ownership is classified into different types based on the number of owners and the nature of ownership. The basic types are sole proprietorship, partnership and corporations. Sole proprietorship has only one owner, partnership should have at least two owners as partners and corporations have limited liability vested on its shareholders.
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- + Choose one nature of organization (SINGLE PROPRIETOR, PARTNERSHIP, CORPORATION) + Based on your choice you need to cite the following + Advantages: If your chosen nature of organization in terms of 1. Formation 2. Tax benefits 3. Decision making Disadvantages: If your chosen nature of organization in terms of 1. Liability 2. Taxes 3. Lack of "continuity" 4. Difficulty in raising capital55. When can partnership/S corporation income can be used. Choose best answer A) Rental income and loss shows profit B) Borrower has accessed the income via cash distributions C) Positive income trends54. What are the 4 business structures when filing tax returns: A) Schedule C, Partnership form 1065, S Corporation 1120 s, Corporation 1120 B) Schedule K-1, 1040 Individual tax returns, Corporation 1120 C) 1065, K-1, 1120 and Schedule E 55. When can partnership/S corporation income can be used. Choose best answer : A) Rental income and loss shows profit B) Borrower has accessed the income via cash distributions C) Positive income trends
- 1. 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. GoodwillMa1. response to the classmate, Amanda Cain, Partnerships are considered flow-through entities meaning, each partner of the business is responsible to pay taxes on their share of the business’s profit/losses. The amount paid on profit/losses is determined by each partner’s investment share of the business. If the business suffers a loss the partners would each take ownership of the amount on their personal income tax rather thank through the partnership as it is not a taxable entity. The same goes for profits, if the business earns a profit each partner must pay taxes on their share. Basic tax filing requirements of a partnership is 1.) file an information return using Form 1065 annually with the IRS and 2.) each of the partners will be required to file an individual income tax return using Form 1040 in addition to Form 1065. The Form 1065 is used to disclose the business’s income/loss and provide a breakdown of how much each of the partners have earned from their share of profit…Select the best answer. Which of the following statements regarding various entities is true? O O O A. A business entity with only one owner is classified as a corporation or is disregarded. ion Q 10 B. A disadvantage of a pass-through entity is double taxation. C. By default, an eligible entity that has a single member will be treated as a limited partnership. Partnerships are taxpaying entities, because tax attributes pass through to the individual partners. O D. Submit Answers 100% Complete Exit
- Select the best answer. Which types of entities should owners have buy-sell agreements among the owners to provide for an orderly transfer of an owner's interest in the case of death or upon the occurrence of a certain event such as divorce retirement, or disability? O A. A closely held S corporation B. A general corporation O C. A large C corporation estion Q 9 OD. A sole proprietorship Submit Answers 100% CompleteAy 2. Mcq Which of the following items may be subject to the sef-employmant tax? A partners distributive share of partnership income b. Capital gains c. Interest income d. Dividends income E. None of these choices are correctDaryl decided to withdraw from Daryl, Lei, Stephen, and Jacob Partnership. They share profit and loss in the ratio of 2:3:2:3 and have capital balances of P100,000, P160,000, P100,000 and P140,000, respectively. The assets and liabilities of the partnership are fairly valued. Required: A. Record the withdrawal of Daryl from the partnership under each of the following independent assumption: 1. Daryl is paid cash of P100,000 for the book value of his interest. 2. Daryl is paid cash of P120,000 for the book value of his interest.
- B. Ta'awun O C. Tabarru' O D. All of the above 28. is a profit-sharing contract whereby one party provides the capital and others party supply the expertise. O A. Mudharabah O B. Wakalah O C. Waqf O D. Ta'awunExplain Advantages vs Proprietorship1. Brings greater financial capability to thebusiness.2. Combine special skills, expertise, andexperience to the partners.3. Offers relative freedom and flexibility ofaction in decision-making.Advantages vs Corporation11. Easier and less expensive to organize2. More personal and informalDisadvantages1. Easily dissolved and thus unstable comparedto a corporation.2. Mutual agency and unlimited liability maycreate personal obligations to partners.3. Less effective than a corporation in raisinglarge amounts of capitalS1: The form and content of the Changes in Owners’ Equity of a partnership are similar to that of a sole proprietorship with no exceptions. S2: In the entry to record distribution of net profits, the revenue and expense summary account is credited.