Which of the following statements concerning partnership agreements is true?

Select one:

a.The partnership agreement must be in writing.

b.Partner's must always contribute equal amounts of capital.

c.It is not necessary to specify the duration of the partnership.

d.The contractual authority of each partner should be specifieD.

Which class of preference shares have the right to receive further dividends above their fixed rate once ordinary shares have received a stated percentage?

Select one:

a.Redeemable preference shares

b.Participating preference shares

c.Cumulative preference shares

d.Bonus preference shares

The part of the financial statements of a partnership that differs most from that of a sole trader is the:

Select one:

a.income section of the income statement.

b.expense section of the income statement.

c.assets section of the balance sheet.

d.equity section of the balance sheet.

Which of the following statements about general purpose financial reports (GPFRs) is correct?

Select one:

a.Neither the IASB's Conceptual Framework or SAC 2 contain a definition of GPFRs.

b.The IASB's Conceptual Framework and SAC 4 have different definitions of GPFRs.

c.There is no clear definition of GPFRs in the IASB's Conceptual Framework.

d.The IASB's Conceptual Framework and SAC2 have the same definition of GPFRs.

Which of the following would not typically be classified as a non-current liability?

Select one:

a.Provision for long service leave

b.Unsecured notes payable

c.Accounts payable

d.Mortgage payable

Which statement concerning drawings by partners in a partnership is correct?

Select one:

a.Drawings are generally regarded as withdrawals of future profits.

b.Charging interest on drawings acts as an incentive to partners to withdraw money from the partnership.

c.Drawings are taken into account when calculating the final distribution of profit between the partners.

d.Interest is charged on drawings if the partnership agreement is silent on the matter.

Macy and John have capital account balances at the end of the year of $100 000 and $25 000 respectively. Profit of the partnership is $105 000. The profit and loss sharing agreement calls for (1) a salary of $40 000 to Macy and $35 000 to John, (2) interest of 5% p.A. on capital balances, (3) the residual profit to be split 80:20 in favour of Macy. Macy's share of the distribution is:

Select one:

a.$41 000

b.$45 000

c.$64 000

d.$26 000

On 28 February 2020, Xavier Ltd declared and distributed an 8% share dividend (bonus issue). At that date the entity's total share capital was $180 000, fully paid to $1. What is the effect of this dividend on Xavier Ltd's total shareholders' equity?

Select one:

a.Decrease of $14 400.

b.It depends on the current market value of the shares.

c.Increase of $14 400.

d.No effect.

Under current accounting standards preliminary expenses of forming a company must be treated as a:

Select one:

a.asset.

b.expense.

c.liability.

d.deduction from the proceeds of the share issue.

As specified in the Conceptual Framework, which two criteria must be met before a liability can be recognised in the accounting records?

Select one:

a.It must be probable that any future sacrifices associated with the item will flow from the entity and the liability must have a cost or value that can be measured with reliability.

b.It must be probable that a future sacrifice of economic resources will be required and the liability must be beyond a reasonable doubt.

c.The liability must be beyond a reasonable doubt and the amount of the liability must be able to be recognised reliably.

d.There must have been a past event and there must be a present obligation.