Question 31 Relevant accounting information o is information that has been audited. O must be reported within one year. O has been objectively determined. O is information that is capable of making a difference in a decision. Question 32 When preparing financial statements, comparability is important. Which of the following statements reflects comparability? Information makes a difference in a decision. Information is free from bias that is intended to attain a predetermined result The same accounting principles are used from year to year. O Companies with similar circumstances use the same accounting principles. Question 33 In a partnership liquidation situation where one or more of the partners' capital accounts have a debit balance, this is referred to as a loss on realization. O a capital deficiency no capital deficiency. O a gain on realization Annan A will learn while vou earn points based on the Point Potential Policy set by your instructor. Question 34 The liquidation of a partnership ends the business. It involves o selling noncash assets. paying liabilities. o distributing any remaining assets to partners. O all of the above. Question 35 In the final step of the liquidation process, remaining cash is distributed to partners O on the basis of the remaining capital balances. O regardless of capital deficiencies. O on an equal basis. O on the basis of the profit ratios. Question 36 Partners C, S, and have capital account balances of $59100 each. The profit and loss ratio is 5:2:3 respectively. In the process of liquidating the partnership, noncast assets with a carrying amount of $49300 are sold for $19800. The balance of Partner S's Capital account after the sale is $44350 $20650. O $53200 $65000 PILL BOREN POINTER VERSION BACK NET Question 37 Dana Jennifer was admitted to partnership with a 16% ownership interest after investing $15720 cash. The partnership capital before the admission of Jennifer was $132000. Which of the following best describes the impact on the capital accounts from this transaction? Jennifer will receive a bonus of $15830 from the old partners. Jennifer will pay a bonus of $15830 to the old partners. Jennifer will pay a bonus of $7915 to the old partners. Jennifer will receive a bonus of $7915 from the old partners Print Potential Policy set by your instructor Question 38 When admitting a new partner by investment, a bonus to old partners is allocated on the basis of the salaries of the old partners. O the basis of capital balances. O the basis of the original investment of the old partners. the basis of profit ratios before the admission of the new partner. Question 39 Patricia and Debra each sell 1/3 of their partnership Interest to Sandra, receiving $19700 each. At the time of the admission, each partner has a 599100 capital balance. The entry to record the admission of Sandra will show a debit to Patricia, Capital for $19700 debit to Debra, Capital for $59100. debit to Cash for $39400 credit to Sandra, Capital for $59100 Question 40 The partners' drawings accounts are O reported on the income statement. O closed to income summary. O reported on the balance sheet. o closed to the partners' capital accounts
