7. A well written partnership agreement should include all of the following except ________.

A. capital contributed by partners

B. drawings made by partners

C. profit or loss sharing ratio

D. interest on loan (1 mark)

8. Which of the following items would be found in a partners current account ? i. Drawings ii. Capital iii. Interest on loan iv. Sharing of profit or loss

A. i, ii and iii B. i, iii and iv C. ii, iii and iv D. All of the above (1 mark)

9. A conceptual framework for financial reporting is ________________.

A. a set of regulations which govern financial reporting B. a set of principles which underpin financial reporting C. a set of items which make up an entitys financial statements D. a set of financial reporting standard (1 mark)

10. Which of the following is the fundamental qualitative characteristics of the conceptual framework for financial reporting ?

A. Relevance B. Verifiability C. Timeliness D. Understandability (1 mark)

11. ________________ concepts assume that a business will continue in operation indefinitely.

A. Materiality B. Prudence C. Going concern D. Neutrality