Question 21 (4 points)

The solution available through the bankruptcy code when a troubled corporation is liquidated is known as a ___________ liquidation.

Question 21 options:

a)	Chapter 11

b)	Chapter 22

c)	Chapter 13

d)

Chapter 7

Question 22 (4 points)

Lydia, Doby, and Lola are in a partnership together and each have capital balances of $250,000. A new partner, John, pays Doby $200,000 directly for 100% of his interest in the new partnership, replacing him in the partnership. The journal entry on the books of the partnership to account for this transaction would be:

Question 22 options:

a)	Debit Capital-Doby $200,000, Debit Cash $50,000; Credit Capital-John $250,000

b)	No entry is made on the partnerships books as the transaction was made directly between Doby and John

c)	Debit Cash $250,000; Credit Capital-John $250,000

d)	Debit Capital-Doby $250,000; Credit Capital-John $250,000

Question 23 (4 points)

Lydia, James, Lola, and Shawn are in a partnership together and have a combined capital balance of $700,000. A new partner, Carol pays the partnership $300,000 directly for a 1/5 interest in the new partnership. The partnership chooses the goodwill method to existing partners to account for this transaction and will allocate any increase in implied value evenly amongst the existing partners. The journal entry on the books of the partnership to account for this transaction would be:

Question 23 options:

a)	Debit Cash $300,000, Debit Goodwill $500,000; Credit each of the existing partners capital accounts $125,000 each, Credit Capital-Carol $300,000

b)	A Debit Cash $300,000, Debit Goodwill $400,000; Credit each of the existing partners capital accounts $100,000 each, Credit Capital-Carol $300,000

c)	Debit Goodwill $300,000, Debit Cash $800,000; Credit each of the existing partners capital accounts $200,000 each, Credit Capital-Carol $300,000

d)	Debit Goodwill $400,000, Debit Cash $800,000; Credit each of the existing partners capital accounts $200,000 each, Credit Capital-Carol $400,000

Question 24 (4 points)

Company XYZ, a domestic entity, sold goods to a British company on 6/10 with the transaction denominated in Pounds. The sales price of the goods was 200,000, and the cost of the goods was $80,000. The receivable is payable in full on 6/10, and Company XYZ prepares their financials monthly. Relevant exchanges rates are 6/10 1 = $1.30, 6/30 1 = $1.25, and 7/10 1 = $1.35. Based on this information, how much would accounts receivable need to be revalued by on 6/30?

Question 24 options:

a)

$0

b)	$10,000 increase

c)	$10,000 decrease

d)	$4,000 decrease

Question 25 (4 points)

Disclosed information about a segment includes all of the following traits except for:

Question 25 options:

a)	Information must be presented in the dominant foreign currency if the majority of the segments assets are located outside the U.S.

b)	Disclosure of the segment assets

c)	Information presented for reportable segments must be reconciled to the respective consolidated amounts for the enterprise as a whole

d)	The measure of profit or loss follows a management approach focusing on internal decision making rather than any strict definition of profit used by the enterprise