I need help with this please. It is over Chapter 14 advanced accounting Fischer.

Multiple Choice 1. The entity theory of partnership conceptually suggests that the partner-ship entity should continue if a partner is: a. Alive b. In another state c. In another country d. Dissociated 2. The propriety theory of partnership, which views this form of entity as: a. Individuals acting separate b. Group of individual investors c. One primary managing partner d. One partner on salary 3. When a new partnership is formed and Goodwill is recognized what should follow: a. Nothing b. Re- evaluation of net assets c. Distribution of cash d. Increase all partners' capital 4. Assuming a new partner has been approved by the existing partners, the new partner, normally, will experience the same general risks and rights of ownership as do the other existing partners. A new partner is liable for all of the obligations of a partnership that arose before their admission except: a. obligations can only be satised out of partnership assets and not the personal assets of the new partner. b. personal assets of the new partners c. Obligations of previous partners d. Non personal assets of all existing partners. 5. An incoming partner may acquire an interest in the partnership for a price in excess of that indicated by the book value of the original partnership's net assets. This situation would suggest the existence of: a. Unrecognized capital b. Unrecognized excess of cash c. Unrecognized Goodwill d. Recognized Profit 6. It is possible that an incoming partner may acquire an interest in the partnership at a price less than that indicated by the book value. This situation would suggest the existence of: a. Write downs on recorded net assets b. Recognition of loss by all partners c. Increase in other partners net worth d. Decrease in other partners net worth 7. When an incoming partner's contribution is different from that indicated by the book values of the original partnership, the admission of the partner, which method may be used to record the admission: a. RUPA b. Straight Line c. Acceptance d. Goodwill 8. In the BONUS method of partnership recognition existing book values should be: a. Adjusted to current values b. Not adjusted to current values c. Left alone d. Recorded at a price greater than book value 9. The book-value approach of the bonus method does not directly recognize increases in asset values suggested by the consideration that the incoming partner pays. However, the method does indirectly recognize: a. Increase by adjusting capital balances b. Increase by adjusting the operating cash account c. Increase by reevaluation of partners assets d. Increase in partners distribution 10. When the new partner invests some intangible asset, such as business acumen or an established clientele, it is possible to have a bonus credited to the new partner. This bonus may be viewed as: a. Cost incurred to acquire Goodwill of new partner b. Revenue recognition c. Personal Drawing in excess of Goodwill d. Additional investment by all partners. 11. Recording a write down from an original partner's capital of book value to its implied fair market value would involve a debit to which account: a. Cash b. Revenue c. Expense d. Capital 12. Although the admission of new partner does not result in the dissolution and winding up of the previous partnership, the goodwill method views the admission of a new partner as an opportunity to: revalue net assets as though a new entity had been create a. Increase the Goodwill account b. Increase the cash account c. Decrease Expense of the new partnership d. revalue net assets 13. In the Goodwill method of recognizing the admission of a new partner which of the following is likely to happen: a. book value is not recognized b. fair market value is not recognized c. Book value would be used to recognize the new partners assets d. The new partnership is recognized at fair market value 14. If differences between the fair value and the book value of recorded assets are identiable, appropriate adjustments to asset balances should be considered. Since a change in ownership structure creates a new, distinct legal entity, every attempt should be made to identify differences between fair and: a. Depreciation b. Book Values c. Partners Capital d. Goodwill 15. Assuming there are no differences between the fair value and book value of recorded assets, the new partner's willingness to pay more than the proportionate book value of the new entity indicates a. Assets are over valued b. Liabilities were paid down prior to admission c. Goodwill existed prior to admission d. Partners' Capital should be decreased 16. It may be argued that the difculties associated with the measurement of the fair value of existing assets unjustiably forces: a. Partners liability to increase b. Partners' capital to decrease c. Recognition of expense d. Recognition of Goodwill 17. If objective evidence supports the write-down of existing assets, the previous partners' capital balances would be reduced accordingly in proportion to a. Capital investment b. Profit and loss ratio c. Amount of Drawing d. Amount of Expense 18. A new partner also may be admitted to the partnership by acquiring all or part of the capital interest of one or more existing partners in exchange for some consideration (assets). In this case, the new partner deals directly with a. Existing partners b. Selling partner(s) c. Partnership itself d. Legal Council 19. If a new partner were to purchase 99% of an existing partner's share of a business which account would be debited: a. Existing Partners Drawing b. New Partners Drawing c. Existing Partners Capital d. New Partners Capital 20. The withdrawal of a partner requires a determination of the fair value of the partnership entity and a measurement of: a. Revenue b. Expense c. Cash d. partnership income to the date of withdrawal