1. Which of the following is not a component of the formula used to distribute partnership profits to the partners?

a. Salary allocation to those partners working

b. After all other allocation, the remainder divided according to the profit and loss sharing ration

c. interest on the average capital investments

d. interest on notes to partners

2. Norton was paid P40,000 from the partnership cash account for his withdrawal from the partnership of Maxwell, Slade and Norton. Their capital balances were P40,000, P60,000, and P35,000 respectively. The journal entry to record the withdrawal of Norton would include :

a. a debit to cash for P40,000

b. a debit to Maxwell's capital account for P5,000

c. a debit to Slade's capital account for P5,000

d. a debit to Norton/s capital account for P35,000

3. Items that have been initially recorded as assets but are expected to become expenses overtime or through the normal operations of the business are called

2 points

a. deferred expenses

b. accrued expenses

c. utilities expense

d. all of these