QUESTION 5 Which of the following statements is incorrect relating to partnerships? A. Withdrawal of a salary by a partner is recorded in a partner's drawings account. B. When there is an admission of a new partner, the current partnership is dissolved and a new partnership is formed. C. A partnership agreement can be made verbally or in writing. D. A partnership is a legal entity and is required to pay tax by law. Reset Selection QUESTION 6 6 Water and electricity expense in arrears (unpaid) at the end of the entity's financial year is recorded in the financial statement as.... A. Trade and other receivables in the statement of financial position. . B. Equity in the statement of changes in equity. C. Accrued expense in the current liabilities section of the statement of financial position. D. Cash and cash equivalents in the statement of financial position. Reset Selection QUESTION 7 A subsistence allowance paid to a partner is recorded by: A. Debiting the drawings account of the partner and crediting the bank account. B. Debiting the subsistence (salaries) account and disclosing the transaction as an accrued expense in the statement of financial position. C. Debiting the subsistence (salaries) to partners' account and crediting the partner's current account. D. Debiting the statement of profit or loss and other comprehensive income and crediting the statement of changes in equity. Reset Selection QUESTION 8 An increase in the allowance for credit losses at the end of the entity's financial year is recorded in the general journal by: A. Debiting the allowance for credit losses and debiting the credit losses. B. Debiting the credit losses and crediting the trade receivables account C. Debiting the credit losses and crediting the allowance for credit losses. D. Debiting the credit losses and crediting bank. Reset Selection