QUESTION 1 The disrtibution of partnership profit is distributed to which account? 0 owners bank account II. owners advances account III. owners current account IV. owners capital account Which of these accounts will you not find in a set of partnership financial statements ? Ol. retained earnings O II. current accounts O III. drawings IV. Loan account Which of the following is not in the admission of a partner agreement ? Ol. The new partner's interest in the partnership II. The cash collection of debt on behalf of the partner O III. The new partner's interest in the partnership O IV. The new partner's share in the distribution of profits or losses Which document is required when forming a company? 1. Profit Statement II. Memorandum of Incorporation III. KING IV report IV. shareholder loans A company ending with "Incorporated" is a... OI. A State owned Entity II. A Private company III. A personal Liability company IV. A private company The shareholders of a company have a right to. Ol. appoint the directors of the company OII. the right to demand a dividend even though the solvency and liquidity is not met III. the right to buy unauthorised shares in the company IV. to sell assets of the company without consulting anyone Annual financial statements must. Ol be prepared in accordance to GAAP II. must be audited or reviewed depending on the PIS score III. must be be presented in accordance with SARSI IV. must be presented to shareholders every 24 months What would happen if one or more partnerships merge? 1. The partnership sells its stake II. The partnership is now a joint venture III. The old partnership records cease and new partnership records are opened. IV. Partnership sale takes place If a company has a maximum of 1 000 000 authorised shares, what is the maximum number of shares that they can issue? Ol. 1000 II. 1 000 000 III. 10 000 IV. 100 000 A sole trader comprises of how many owners ? OL. 4 O II. 1 III.5 O IV. 8