Please answer the following questions, Thanks!
Instructions: Designate the best answer for each of the following questions. 1. To be considered useful, nancial information should possess all the following qualitative characteristics except a. relevance. b. reliability. c. materiality. d. understandability. _ 2. Which of the following statements concerning partnerships is true? a. Partners must have a written partnership agreement. b. Partnerships have an unlimited life. 0. All provinces in Canada have a Partnership Act that provides basic rules governing the formation of partnerships d. Income in a partnership is always divided equally among all partners. 3 Mutual agency means that a. assets of the partnership are owned jointly by all partners. b. the partnership must carry life insurance. c. partners share income equally. d. any partner can create a binding contract for the partnership. 4 Unlimited liability a. is a concept that explains how assets will be divided in the event of a partner's death. b. exists for general partners. c. may be eliminated for all partners. d. means that the partnership agreement places no limit on the amount of money the partnership can borrow. 5. The concept of consistency a. means that only one method of inventory accounting should be allowed. 0. is the primary motivation for ination accounting. c. suggests that companies should use the same set of accounting principles each year. d. implies that companies should use a single useful life for amortizing all of their assets. 6. Zowkeway Industries sold exercise equipment costing $300, 000 on the instalment basis for $500, 000. Collections from customers were $100, 000 in 2000, $250, 000 in 2001 and $150 000 in 2002. The amount of gross prot that should be recognized in 2002 using the instalment method is a. $250,000. 0. $150,000. c. $60,000. d zero. Carter Builders uses the percentage-of-completion method of accounting for its construction contracts. They estimated the total cost of completing job #129 as being $500,000, and actually incurred costs of $100,000 in 2001 and $400,000 in 2002. The total contract price for the job was $600,000. Carter's 2001 income statement should show a gross prot from this job of a. $00,000. b. $20,000. c. $25,000. d $100,000. 8. Duschene Construction uses the percentage-of-completion method of accounting for its construction contracts. They estimated the total cost of completing job #5692 as being $250,000, and actually incurred costs of $150,000 in 2001 and $100,000 in 2002. The total contract price for the job was $350,000 and the contract was completed in 2002. Duschene's 2001 revenues from this job are a. $140,000. b. $210,000. c. $100,000. d $350,000. 9. To be relevant, accounting information must a. improve the company's internal control. b. be presented on the balance sheet. c. be recorded at historical cost. d be capable of making a difference in a decision. 10. The matching principle states that a. revenues should be matched with assets when they are recorded. b . revenues should be matched with the periods when cash is collected from ustomers. c c. recorded values of assets should match their purchase prices. d none of the above. 11. When the assets of a partnership are sold to liquidate a partnership, the cash received is a. divided among the partners based upon their income-sharing ratios. b. divided among the partners in proportion to their loss-sharing ratios. C. used to pay partnership creditors after partners have recovered all of their capital. d. none of the above. 12. Herman had a capital deficiency of $20,000 and Edwards had a credit balance of $150,000 in his capital account before the entry to record final distribution of cash to partners. When the final distribution of cash is made, the amount of cash Edwards should receive is a. $65,000. b. $75,000. C . $110,000. $130,000. 13. Wilma, Sanjeev, and Soo formed a partnership with income-sharing ratios of 50%, 30%, and 20%, respectively. Cash of $120,000 was available after the partnership's assets were liquidated. Prior to the final distribution of cash, Wilma's capital balance was $80,000, Sanjeev's capital balance was $60,000, and Soo had a capital deficiency of $20,000. Wilma should receive how much of the $120,000 cash? a $70,000. b. $67,500. C . $52,500. d. $80,000. 14. In accounting, conservatism means a. choose the solution that will understate assets or income. b. choose the solution that will be least likely to overstate assets or income. C. choose the solution that will reduce expenses, thereby increasing income. d. voting Reform
