Paris Corporation owns 70% of London Corporation, and 24% of Rome Corporation. London Corporation owns 30% of Rome Corporation. When Paris prepared its consolidated financial statements, it should include London and Rome London but not Rome Rome but not London Either London or Rome Neither London Nor Rome If a partnership became insolvent and was unable to pay its liabilities currently due. What recourse was available to the partnership's creditorsi? The creditors must try obtaining a payment from the partner with the largest capital account balance The creditors must present claims to the partners as individuals based on their ownership ratio. The creditors cannot seek remuneration from the partners as individuals. The creditors must present their claims to the partners in the order of the partners' capital account balances. O The creditors may seek remuneration from any partner they choose. On January 1 Abba Company acquired 60% of Ben Company for $700,000 in cash on the date of the acquisition, the book value of net assets of Ben company were as follows: Cash Inventory Building, Net 500,000 Liabilities $100,000 200,000 (150,000) Net Assets $650,000 During the year, Ben paid total dividends of $80,000, and Abba paid total dividends of $120,000. How Abba's acquisition of Ben should be reported on the Consolidated Statement of Cash- Flow? As $600,000 cash outflow from financing activities As $700,000 cash outflow from investing activities As $600,000 cash outflow from investing activities As $600,000 cash inflow from investing activities The acquisition is an intra-companies transaction and should not be reported on the Consolidated Statement of Cash-Flow Ruth invested $100,000 in the Doing Great partnership. The partnership is now being liquidated and Ruth has a deficit balance of $30,000. Which of the following statement is true? Ruth responsibility and loss is constrained to the original $100,000 investment. Ruth is responsible to pay the partnership additional $30,000, even if she would need to sell her personal assets in order to afford this payment. Ruth should cover her deficit only if she can easily afford it. Ruth is legally required to declare personal bankruptcy Ruth should initiate legal proceedings against the partnership