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Quiz > Integrated Accounting for Business 2 > Flashcards

Integrated Accounting for Business 2 Flashcards

1
Q

Accounts Receivable and Allowance for Bad Debts (AFBD) are ________

A

Contra-assets

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2
Q

5 Classifications of Partnership: According to Legality of Existence
a. SEC (Security and Exchange Commission) compliant of all legal requirements
b. doesn’t comply to legal requirements to SEC

A

a. De Jure
b. De Facto

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3
Q

profits/gain will continue to operate

A

Going Concern

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4
Q

3 Elements of Contract:

A
  1. Consent
  2. Object
  3. Cause
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5
Q

is estimated selling price less estimated costs of completion and costs to sell.

A

Net Realizable Value (NVR)

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6
Q

What does it mean by capital contributions?

A

Money / Property

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7
Q

10 Characteristics: It requires less formality

A

Ease of Formation

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8
Q

10 Characteristics: partnership can transact and acquire properties in its name. (Judicial Personality and Legal Personality)

A

Separate Legal Personality

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9
Q

True or False: Each partner’s capital account is debited for the fair value of his net contributions.

A

False. Must be credited.

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10
Q

True or Flase: Unlimited life and limited liability are advantages of a partnership over corporations.

A

False

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11
Q

True or False: A partner has no right to possess a partnership property for any other purpose without the consent of his partners.

A

True

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12
Q

What does it mean by industry?

A

Labor/skills

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13
Q

2 Methods of Average Capital

A
  1. Months unchanged method
  2. Months outstanding method
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14
Q

capital contributions from the date of partnership formation

A

Original Capital

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15
Q

_______ is recorded on the credit side of an account. Any increase is also recorded on the credit side. Any decrease is recorded on the debit side. (minus)

A

Capital

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16
Q

Kind of partner participating actively and is not known by public

A

Secret

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17
Q

Capital Contribution in the beginning of the year or the reporting period

A

Beginning Capital

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18
Q

Does industrial partners share in losses?

A

No

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19
Q

Accounting for initial investments to the partnership

A

Formation

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20
Q

Contracts may be _______ or _______.

A

Written or Verbal

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21
Q

Division of profits and losses

A

Operation

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22
Q

How many persons can be in a partnership?

A

No limitations. Just two or more

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23
Q

5 Classifications of Partnership: According to Duration
a.
b.

A

a. Fixed Term
b. At will

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24
Q

an artificial being created by operation of law having the right of succession with the powers, attributes, and properties granted by the law or inherent to its existence.

A

Corporation

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25
Q

3 Steps:

A
  1. To adjust the sole proprietor’s books. (fair value)
  2. To close the sole proprietor’s books.
    ▪ Debit all accounts with credit balances.
    ▪ Credit all accounts with debit balances.
  3. Record contributions in partnership policies.
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26
Q

10 Characteristics: “the act of one is the act of all” Fiduciary Relationship - established based on confidence and trust

A

Mutual Agency

27
Q

Kind of partner participating actively and known by public.

A

Ostensible Partner

28
Q

The assets contributed to the partnership are measured in the partnership books at carrying amount or cost to the contributing partner.

29
Q

10 Characteristics: Agreed assets to be contributed

A

Co-Ownership of Contributed Assets

30
Q

True or False: A stipulation which excludes one or more partners from any share in the profits or losses is valid.

31
Q

4 Stages of Partnership

A
  1. Formation
  2. Operation
  3. Dissolution
  4. Liquidation
32
Q

10 Characteristics: partnership may be dissolved by the will of any partner, termination, expulsion, death, insolvency, or withdrawal.

A

Limited Life

33
Q

______ is a partner who takes no share in the active business of a company or partnership, but is entitled to share in profits and subject to share in losses.

34
Q

5 Classifications of Partnership: According to Purpose
a. to buy and sell, merchandising
b. services, firms

A

a. Trade
b. Non-Trade

35
Q

5 Classifications of Partnership

A
  1. According to object
  2. Liaility
  3. Duration
  4. Purpose
  5. Legality of Existence
36
Q

______ is a characterisitc of partnership wherein no partner shall be excluded from the share in partnership profits.

A

Division of Profits

37
Q

11 Kinds of Partners:

A
  1. General
  2. Limited
  3. Managing
  4. Liquidity
  5. Capitalist
  6. Industrial
  7. Ostensible
  8. Dormant
  9. Silent
  10. Secret
  11. Partner by Estoppel
38
Q

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market particiapants at the measurement dat.

A

Fair Value

39
Q

5 Classifications of Partnership: According to object
a. Universal Partnership of all _____ properties
b. Universal Partnership of ______
c. ______ Partnership

A

a. Universal partnership of all present properties
b. Universal Partnership of profit
c. Particular Partnership

40
Q

5 Classifications of Partnership: According to Liability:
a.
b.

A

a. General Partnership
b. Limited Partnership

41
Q

______ partner cannot be a managing partner because he has limitations on being held liable.

A

Limited Partner

42
Q

2 Types of Property

A

Immovable / Real Property
Personal Property

43
Q

10 Characteristics: of the assets of the partnership is not enough, personal assets may be used.

A

Unlimited Liability

44
Q

Kind of Partner not a partner but representing the
company/partnership.
It is up to the partnership if they will honor or not the representation

A

Partner by Estoppel

45
Q

Kind of Partner participating inactively and is not known by public.

46
Q

True or False: If only the allocation of profits has been agreed upon, the allocation of losses shall be in the same proportion.

47
Q

Winding-up of affairs

A

Liquidation

48
Q

Kind of Partner – participating inactively and is known by public.

49
Q

Considered as a person by the law

A

Judicial Personality

50
Q

Admission of a new partner and withdrawal, retirement, or death of a partner

A

Dissolution

51
Q

Capital Contribution in the end of the year or reporting period (fiscal year)

A

Ending Capital

52
Q

a contractual agreement whereby two or more perosns bind themselves to contribute money, property, or industry into a common fund with the intention to provide profits among themselves.

A

Partnership

53
Q

A partnership in which all partners are individually liable

A

General Partnership

54
Q

Order of Priority in Profit (3)

A
  1. Based on partners’ agreement.
  2. Based on capital contributions (capital partners)
  3. Just and Equittable - industrial partners
55
Q

Kind of Partner that contributes industry such as labor and/or skills.

A

Industrial Partner

56
Q

3 Partnership Formation

A
  1. Two (2) individuals with no existing business.
  2. One (1) individual and one (1) sole proprietor.
  3. Two (2) sole proprietors.
57
Q

Order of Priority in Losses (4)

A
  1. Based on partners’ agreement
  2. No loss agreement but with profit sharing agreement.
  3. Capitalist partners - based on capital distributions
  4. Industrial Partners - no share in loss
58
Q

10 Characteristics:
1. Ease of _______
2. _______ Contribution
3. _______ Legal Personality
4. Co-______ of _________ Assets
5. Division of ________
6. _______ Life
7. _______ Liability
8. _______ Agency
9. _______ ______ Account
10. Transfer of _________

A
  1. Ease of Formation
  2. Mutual Contribution
  3. Separate Legal Personality
  4. Co-Ownership of Contributed Assets
  5. Division of Profits
  6. Limited Life
  7. Unlimited Liability
  8. Mutual Agency
  9. Partners’ Capital account
  10. Transfer of Ownership
59
Q

Kind of Partners that contributes money or property

A

Capitalist Partner

60
Q

10 Characteristics: requires the approval of the remaining partners.

A

Transfer of Ownership

61
Q

4 Types of Capital Contributions:

A
  1. Original Capital
  2. Beginning Capital
  3. Ending Capital
  4. Average Capital
62
Q

A partnership in which at least one partner is personally liable

A

Limited Partnership

63
Q

True or False: In partnership formation, all accounts in the sole proprietor’s books will be transferred to the partnership books.

Quiz (6 decks)

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