10/7/22, 8:56 PM Acctg 102- True or False (Dissolution - Changes in Ownership) Flashcards | Quizlet

Acctg 102- True or False (Dissolution - Changes in O... Study

Social Science Economics Finance

Acctg 102- True or False (Dissolution - Changes in

Ownership)
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Textbook solutions for this set

Fundamentals of Financial Management, Concise

Edition
10th Edition
Eugene F. Brigham, Joel Houston

777 solutions

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Terms in this set (25)

When a partner leaves a partnership it is possible that

False
total assets will be unaffected

When new partners invest more than the equity

interest they are to recieve in the net assets of an
True existing partnership, part of the entry to record the
new partners investment is an increase in the capital
accounts of the old partners

When a new partner is given 30% interest in a

True partnership, he recieve 30% of all future profits and
losses

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10/7/22, 8:56 PM Acctg 102- True or False (Dissolution - Changes in Ownership) Flashcards | Quizlet

Acctg 102- True or False (Dissolution

In admission by - Changes
purchase, in isO...
payment personally
Study
made to the partner from whom the interest is
True
obtained resulting to mere transfers among capital
accounts

The dissolution of a partnership is the same as the

False
liquidation of a partnership

Goodwill is the amount of capital or equity

False
transferred by one partner to another partner

When Yolanda Garcesa purchased Esperanza

Nolasco's $200,000 capital interest for $200,000, the
False
ensuing entry books of the partnership would
contain a debit to cash for $200,000

It is possible to invest assets into a partnership and

False
be given a zero balance

A partnership may be dissolved at anytime by any of

True
the partners

The withdrawal of a partner from a partnership is a

True
type of dissolution

A new partner must have the consent of all the

True
partners before being admitted into the partnership

When a partner withdraws assets greater than his

True capital balance, the excess is treated as a bonus to
the remaining partners

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10/7/22, 8:56 PM Acctg 102- True or False (Dissolution - Changes in Ownership) Flashcards | Quizlet

Acctg 102- True or False (Dissolution

When a partner - Changes
withdraws from ain O... and
partnership the
Study
value of the asset paid to the partner by the
partnership is greater than the balance in his capital
True
account, the partnership is, in effect, paying the
withdrawing partner a bonus

When the existing partner pay a bonus to a newly

True admitted partner, the existing partners' account are
debited

When a bonus is allowed to a new partner, part of

True the entry to record his admission to a business
reduces the capital accounts of the old partners

A person admitted as a partner into an existing

True partnership is liable for obligations of the partnership
contracted before his admission

Joel Wanagen purchased directly from Vangie

Buenaventura her $30,000 partnership interest for
True
$50,000. The entry to record the transaction is
$30,000

A partnership is dissolved when a new partner is

True
admitted to the partnership

The retirement of a partner by payment from

True partnership assets may cause the other partners'
capital accounts to decrease

Edward Santos directly purchased Ferdinand

False Romero's $250,000 partnership interest for $300,000.
The entry to record the transaction is for $300,000

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10/7/22, 8:56 PM Acctg 102- True or False (Dissolution - Changes in Ownership) Flashcards | Quizlet

Acctg 102- True or False (Dissolution - Changes

It is possible to invest no tangiblein O...into a Study
assets
True partnership, yet be given a positive opening balance

A partner who withdraws from a partnership is always

True
entitled to the balance in his capital amount

In admission by investment, the bonus method is

False used when the total agreed capital is more that
contributed capital

On dissolution, the partnership is not terminated but

True continues until winding up of partnership affairs is
completed

If a partner withdraws by selling his equity interest to

the partnership in exchange for an amount greater
False than the balance in his capital account, the excess
payment will be treated as a bonus to the continuing
partners

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