AC216 Accounting II Week 3 Quiz Answers (Herzing)

AC216 Accounting II Week 3 Quiz Answers (Herzing)

AC216 Accounting II Week 3 Quiz Answers (Herzing)

  1. "Limited Life" means
  2. A disadvantage that is NOT peculiar to the partnership form of organization includes

  3. office equipment with a fair market value of $70,000, delivery equipment with a fair market value of $89,000, and cash of $54,000. She owes $68,000, represented by a note on the delivery equipment. If Delisa's office equipment cost $80,000 and has accumulated depreciation of $30,000, the amount at which the asset should be entered on the books of the new partnership would be

  4. The basis on which profits and losses are to be shared between partners is

  5. The allocation of net income and its impact on partner's equity balances should be disclosed in

  6. When a new partner is admitted,

  7. When a partnership is liquidated, the assets are sold and the cash realized is applied first to the

  8. Which of the following is not a step in the liquidation of a partnership?

  9. J.O'Keefe and J. Kisha combined for a 50/50 partnership in 1980 and continued to do business successfully for many years. In January 2011, J. Kimley offered to contribute a sizable amount of working capital and was accepted as a partner in the business. J. O'Keefe and J. Kisha each own 40% of the business and J. Kimley 20% of the business partnership. Profits and losses are to be shared according to these percentages. Due to the lagging economy and a sudden loss of profits, all three agree to liquidate the business and enjoy a gain on the sale of their major asset, which was purchased in 1981. This should be distributed

  10. After closing  the temporary owners' equity accounts into Income Summary, and after allocating the net income and closing the partners' drawing accounts, assume the partners' capital accounts had credit balances as follows: Rhodes, $40,000; Serrata, $60,000; Shepard, $75,000. Partners share profits and losses as follows: Rhodes, 20%; Serrata, 30%; and Shepard, 50%. If Shepard retired and withdrew $85,000 in settlement of his equity and settlements are allocated according to capital interests, the amount entered in Rhodes' capital account would be a