Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

COBLAW1 > ACCCOB1 (quiz 2) > Flashcards

ACCCOB1 (quiz 2) Flashcards

1
Q

A cooperative is a people-centered enterprise which are jointly owned and democratically controlled by and for their members to realize their common socio-economic needs and aspirations.

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Manufacturing concerns are business that are engaged in the processing of products or the conversion of raw materials into finished goods that are then sold like furniture factory and shoe factory

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

The names, age, education background, legal case details, addresses of the partners, classes of partners stating whether the partner is a general or a limited partner is reflected in the Articles of Co-partnership.

A

FALSE
Age, education, background, legal case details are not requirements.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

The rights and duties of each of the partners are reflected in the Articles of Co-partnership.

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

A partnership is easily dissolved and the causes of dissolution and the provision for arbitration in settling disputes are not reflected in the Articles of Co-Partnership.

A

FALSE
These are reflected in the Articles of Co-Partnership

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

A partnership is easily formed and has unlimited life.

A

FALSE
Limited life only

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

A partnership is an organization separate and distinct from that of each of the partners.
and has no legal personality.

A

FALSE
“has legal personality”

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Distribution of loss incurred by the partnership is debited to the drawing accounts of the partners.

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

A sole proprietorship and partnership have basically the same accounting cycle

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Temporary withdrawals which are debited to the Drawing accounts, are deducted from the partners’ share in the partnership profit.

A

FALSE
Withdrawals are not deducted from the partners’ share in the profit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

If an individual will form a partnership with another individual with existing sole proprietorship business, the existing assets originally used in the sole proprietorship business of the latter TRUEmust be revalued.

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

The financial statements are prepared for a partnership form of business and are basically always the same as that of the sole proprietorship.

A

FALSE
There are exceptions like Statement of Profit or Loss, Statement of Changes in Partner’s
Equity, Statement of Financial Position, and Notes to Financial Statements.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Profit distribution may be viewed as capital investment providing interest to give recognition to differences in the capital contribution given in proportion to the period such capital was used.

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

In the absence of profit and loss ratio stipulation, the distribution of profit must be based on the partner’s contributed capital but the industrial partner shall receive a share in profit as what is just and equitable under the circumstances.

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

In case where the partners have not agreed on the method of division of partnership profit, as well as losses, the industrial partner/s is not exempt from any losses.

A

FALSE
“shall be exempted from any losses” (Page 80)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Which of the following is an advantage of a partnership?
A. A general partner may be subjected to a personal liability for erroneous management
decisions made by his associates.
B. Limited amount of capital may be raised compared to a corporation.
C. There is difficulty in transferring ownership interest because ownership interest in the
partnership cannot be transferred without the consent of all the partners.
D. There is a relative freedom and flexibility in decision-making compared to a corporation.

A

D. There is a relative freedom and flexibility in decision-making compared to a corporation.

15
Q

Which of the following is a disadvantage of a partnership?
A. There is difficulty in transferring ownership interest because ownership interest in the
partnership cannot be transferred without the consent of all the partners.
B. It is better managed because more than one person supervises business affairs.
C. Better management result from the combined experience and ability of several
individuals.
D. Decisions are affected simply by agreement among the partners without the formalities
necessary under a corporation.

A

A. There is difficulty in transferring ownership interest because ownership interest in the
partnership cannot be transferred without the consent of all the partners.

16
Q

This is a partnership wherein all the partners are general partners who are liable for the
partnership debts to the extent of their personal property after all the partnership assets have
been exhausted.
A. General
B. Manufacturing
C. Limited
D. Merchandising

A

A. General

17
Q

This is a partnership which has for its object determinate things, their use or fruits or a specific
undertaking or the exercise of a profession or vocation.
A. Universal partnership of all present property
B. Particular Partnership
C. Universal partnership of profits
D. Partnership at will

A

B. Particular Partnership

18
Q

This is a partner who contributes industry, labor, skills or services.
A. Capitalist
B. Capitalist-Industrial
C. Industrial
D. General

A

C. Industrial

19
Q

This is a partner who does not take active part in the business and is not known to the public
as a partner.
A. Nominal
B. Secret
C. Dormant
D. Ostensible

A

C. Dormant

20
Q
  1. Which of the following represents the appropriate way to record industry contribution in a
    partnership?
    A. At the partner’s personal assessment of value
    B. At the current market value of industry
    C. At a nominal value of P1
    D. Making a memorandum entry with no assigned value
A

D. Making a memorandum entry with no assigned value

20
Q

If one partner already runs a business, and the other is investing in it, which steps should they
follow to properly record the conversion from a Sole Proprietorship (SP) to a Partnership when
they opt to start new accounting records?
I. Close the Sole Proprietor’s book
II. Reassess the value and adjust Sole Proprietor’s book
III. Record the investments of the partners
A. I, II, III
B. II, I, III
C. III, I, II
D. II, III, I

A

B. II, I, III

21
Q

Bonus may be allocated by the following, except:
A. Percentage of net liabilities
B. Percentage of net income
C. Percentage of net income after salaries and interest
D. Percentage of net income after salaries, interest and bonus

A

A. Percentage of net liabilities

22
Q

The following partner should share in the losses of the partnership, except
A. Industrial partners
B. Industrial-capitalist partner
C. Capitalist partner
D. Limited partner

A

A. Industrial partners

23
Q

The most equitable distribution of partnership income based on capital contributions uses
A. Beginning capital
B. Ending capital
C. Average capital
D. Equally

A

C. Average capital

24
Q

Which of the following statements best describes the basic rule of the partnership’s profit or loss
distribution?
A. Profit or loss is allocated based on the agreement of the partners.
B. Profit or loss is given only to one owner.
C. Profit or loss distribution depends on the number of partners forming the partnership.
D. Profit or loss is divided by equally between or among partners.

A

A. Profit or loss is allocated based on the agreement of the partners

25
Q

This allowance for profit distribution is granted only if there is profit.
A. Salary
B. Interest
C. Bonus
D. All of the above

A

C. Bonus

26
Q

In a partnership, salaries given to partners are considered as
A. An expense of the business
B. A liability
C. A loss
D. An allocation of profits and losses

A

D. An allocation of profits and losses

26
Q

In partnership, when there is no agreement on how losses will be divided among the partners, it
will be divided:
A. By any appropriate ratio.
B. According to capital contributions.
C. Equally.
D. In the same manner as the profits are distributed.

A

D. In the same manner as the profits are distributed

COBLAW1 (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions