Accounting for Special Transactions FINALS

In which order are the partnership assets distributed to partners under Partnership Law?

• Capital Balances, Loans, Profits

• Loans, Profits, Capital Balances

• Loans, Capital Balances, Profits

• Profits, Capital Balances, Loans

The following are true about possible loss except:

• Total value of remaining non-cash assets.

• Cash withheld to pay for anticipated liquidation expenses and unrecorded liabilities that may rise.

• Assumed unrealizable non-cash assets

• Expenses and liabilities not absorbed by partners.

In cash distribution plan which partner gets the first cash distribution?

• The partner with the largest loan balance.

• The partner with the largest loss absorption potential.

• The partner with the largest capital balance.

• The partner with the largest profit and loss ratio

In calculating the safe payment, you assume:

• Partnership liabilities have been paid.

• No Liquidation expenses will be paid.

• All non-cash assets are worthless.

• Cash on hand can be fully distributed.

An entity that participates in a joint arrangement is referred to under PFRS 11 as

• A. Joint arranger

• B. Party to a joint arrangement

• C. Choice A only if the party obtains joint control

• D. Choice B regardless of whether the party obtains joint control

Joint ventures can take many forms and structures. Joint ventures may be created as partnership, as corporations, or as unincorporated associations. All of the following are the distinct types of joint venture, except

• Jointly controlled assets

• Jointly controlled entities

• Jointly controlled interests

• Jointly controlled operations

Which of the following is a characteristic of a joint arrangement?

I. The parties are bound by a contractual arrangement.

II. The contractual arrangement gives two or more parties joint control over the arrangement.

        

           

• I only

• II only

• Neither I nor II

• Both I and II

It is the joint arrangement that involves the establishment of a corporation in which each party has an equity interest in the net assets of the corporation

• Joint venture

• Joint operation

• Either joint venture or joint

  operation

• Neither joint venture nor joint

  operation

It is a form of joint venture, where each venturer should recognize in its separate financial statements all assets of the venture that it controls, all liabilities that is incurs, all expenses that it incurs, and its share of any revenues produced by the venture.

• Jointly controlled assets.

• Jointly controlled entities.   

• Jointly controlled interests.

• Jointly controlled operations.

Answer explanation

kay follow t na lang sa kay ma'am para if wrong ta daw may mapakita ta sa iya nga basehan hehe

An entity that participates in a joint arrangement is referred to under PFRS 11 as   

• A. party to a joint arrangement

• B. joint arranger

• C. choice A only if the party obtains joint control

• D. choice B regardless of whether the party obtains joint control