1.Jade and Justin own and operate a partnership that specialises in garden maintenance. Their business is very busy and the partners are considering admitting their friend Roger as a partner. Select all answers below that represent advantages of this decision.

Select one or more:

a. The business can continue uninterrupted as Roger becomes a partner.

b. The business will have more access to capital.

c. Jade and Justin's liability will continue to be limited.

d. There will be no change to reporting requirements or the degree of regulation.

e. Their tax rate will change to 27.5%.

2.

The following statements relate to management accounting. Select all of the statements that are true.

Select one or more:

a. The reports could be prepared as often as daily if required.

b. The report contents focus on current and future issues to allow planning.

c. The reports have a prescribed format to enable comparability.

d. The reports can be expressed in dollars or another unit of measurement.

e. The reports are primarily used by internal users, but can be used by external users as well.

3.

The following statements relate to financial ratios. Select all of the statements that are true.

Select one or more:

a. A Current Ratio that is the same value as the Quick (Acid-Test) Ratio indicates that a business has no inventory.

b. A Dividend Payout Ratio can be greater than 100% if a business is using some of a prior year's retained earnings.

c. If the Debt Ratio increases, it is possible for the Interest Coverage Ratio to also increase.

d. An improvement in the Days' Debtors ratio may be the result of developing good relationships with credit customers.

e. While the Days' Inventory ratio should be as short as possible, there is no 'average' or benchmark to aim for since it depends on what the business is selling.