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Quiz in Partnership Operations PDF Free

The document discusses various aspects of partnership accounting, including: - Drawing accounts are used to record withdrawals by partners from their capital accounts. - In the absence of an agreement, partnership profits and losses are shared in proportion to capital contributions, though industrial partners are not liable for losses. - Partner salaries allocated from profits are considered distributions of profits/losses rather than expenses. - Drawings are similar to withdrawals and are not used to record interest earned on a partner's capital balance.

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Kristine Esplana Toralde
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2K views1 page

Quiz in Partnership Operations PDF Free

The document discusses various aspects of partnership accounting, including: - Drawing accounts are used to record withdrawals by partners from their capital accounts. - In the absence of an agreement, partnership profits and losses are shared in proportion to capital contributions, though industrial partners are not liable for losses. - Partner salaries allocated from profits are considered distributions of profits/losses rather than expenses. - Drawings are similar to withdrawals and are not used to record interest earned on a partner's capital balance.

Uploaded by

Kristine Esplana Toralde
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Which of the following is not a withdrawal that may Response: Drawing accounts are closed to the

be found in a partnership’s drawing account? partners’ capital accounts at the end of the
accounting period
Response: All of the above may be found in a
drawing account According to the Philippine Civil Code, in the
absence of a stipulation on the sharing of profits or
As a partnership agreement calls for allocation of
losses, partnership profits and losses shall be
profits and losses by salary allocations,…
shared by the partners
Response: The bonus criteria would not be used
Response: In proportion to what the partners may
According to the Philippine Civil Code, if only the have contributed but the industrial partner shall not
share of each partner in the profits has been… be liable for the loss

Response: The same as the sharing in profits Mr. A and Ms. B formed a partnership. Mr. A
contributed P1,000,000 cash, while Ms. B will
You and I are partners. We share in profits equally. contribute her services. Mr. A is a capitalist partner
Because I am the managing partner, I am entitled while Ms. B is an industrial partner.
to a 20% bonus computed on profit before
deducting the bonus. Response: True

If our partnership earns profit of P1,000,000 (before Which of the following would be least likely to be
deducting my bonus), your share would be used as a means of allocating profits among the
P500,000. partners who are active in the management of the
partnership?
Response: False
Response: Interest on average capital balances
A and B formed a partnership. The partnership
agreement stipulates that annual salary allowances A and B formed a partnership. The partnership
of P50 for A and P30 for B will be provided and any agreement stipulates that annual salary allowances
remaining amount of profit or loss shall be divided of P50 for A and P30 for B will be provided and any
equally remaining amount of profit or loss shall be divided
equally
During the period, the partnership earned profit of
P100 before salary allowances. A’s share in the During the period, the partnership incurred loss of
partnership profit is P10. P100 before salary allowances. A’s share I in the
partnership loss is -P40.
Response: False
Response: True
Which of the following statements is true
concerning the treatment of salaries in partnership Drawings
accounting?
Response: Are the same nature as withdrawals
Response: Partner salaries may be used to allocate
Withdrawals from the partnership accounts are
profits and losses; they are not considered
typically not used
expenses of the partnership
Response: To record interest earned on a partner’s
Which of the following is not a component of the
capital balance
formula used to distribute partnership profits to the
partners? Mr. C, the managing partner in ABC Co. is entitled
to a 20% bonus on profit after partners’ salaries
Response: Interest on notes to partners
and bonus. ABC co. reported profit of P360 after
Which of the following statements is correct with deducting the partners’ salaries but before
regard to drawing accounts that may be used by a deducting Mr. C’s bonus. Mr. C’s bonus is P80.
partnership?
Response: False

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