National Teachers College

629 J. Nepomuceno Street, Quiapo, Manila

CHOOSE THE BEST ANSWER.

Use the following information for the next three independent questions:

Jose, Kris and Lando are partners is an accounting firm. Their capital account balances at year-end were:
Jose, P50,000; Kris, P110,000; Lando, P50,000. They share profits and losses on a 4:4:2 ratio after the
following terms.
i. Lando is to receive a bonus of 10% of the net profit after bonus.
ii. Interest of 10% shall be paid on that portion of a partner’s capital in excess of P100,000.
iii. Salaries of P10,000 and P12,000 shall be paid to partners Jose and Lando, respectively.

1. Assuming a net profit of P44,000 for the year, the total profit share of Lando was:
a. P7,800
b. P16,800
c. P19,400
d. P19,320

2. In the preceding number, how much is the share of Jose after bonus, interest, and salaries?
a. P7,600
b. P6,800
c. P6,640
d. P3,400

3. In the preceding number, how much should be the share of Kris?

a. (P1,200)
b. (P200)
c. P1,000
d. P0

Use the following information for the next three questions:

4. On January 30, 2023, partners, Accountant A and Engineer B, attended the birthday party celebration of
the other partner, Doctor C. At the time that Doctor C blew his birthday candles, he intentionally put a lot
of cake icing to Accountant A’s face. Due to Doctor C’s actions, Accountant A felt humiliated and decided
to withdraw from the partnership the following day. The trial balance of the partnership for the month
ended January 31, 2023 is as follows:
 The agreement of the partners as to the allocation of net income is as follows:
i. Partners are entitled to 12% interest allowance based on their beginning capital.
ii. Engineer B receives 10,200 annual salary allowance.
iii. Remainder divided to the partners based on their profit and loss ratio.

The partners agreed to revalue their assets pursuant to the withdrawal of Accountant A, the balance of
Engineer B’s capital after revaluation is 44,880. The cash settlement for Accountant A’s capital amounted
to 36,445.

How much is the revaluation share of Doctor C?

a. 1,455 c. 2,425
b. 970 d. 0

5. How much is the bonus from Doctor C to Accountant A?

a. 500 c. 700
b. 850 d. 200

6. How much is the capital balance of Engineer B after the withdrawal of Accountant A?
a. 56,875 c. 54,025
b. 44,680 d. 44,800

7. D and N are partners with capital balances of 60,000 and 140,000, respectively. D has a 30% interest in
profits and losses. At this time, the partnership has decided to admit T and C as new partners. T
contributes cash of 110,000 for a 20% interest in capital and a 30% interest in profits and losses. C
contributes cash of 20,000 and an equipment for a 25% interest in capital and 35% interest in profits and
losses. If bonus amounting to 36,500 is given to the old partners, what is the value of the equipment
contributed by C?
a. 63.500 c. 87,500
b. 100,000 d. 100,276

8. P, B, and T are partners with capital balances of 350,000, 525,000, and 700,000, respectively. Their profit
ratio is 5:3:2 while their capital ratio is 4:4:2. J was admitted to the partnership for 20% interest in capital
and 25% in profit by contributing 87,500 cash, and the old partners agree to bring their interest to their
old capital and profit interest sharing ratio. The partnership had net income of 210,000 before admission
of J and the partners agree to revalue its overvalued equipment by 35,000.

How much is the adjusted capital of B before the admission of J in the partnership?
a. 437,500 c. 588,000
b. 577,500 d. 735,000

9. Based on item above, the capital balance of B after the admission of J is?
a. 297,500 c. 470,400
 b. 354,200 d. 588,000

10. Partners C, J, M, and O have decided to liquidate their partnership. The liquidation process will
commence on January 1, 2024. Their statement of financial position on December 31, 2023 shows the
following balances:

Partners share the profits and the losses of the partnership equally. During 2024, trade receivables of
300,000 were collected and the rest were deemed uncollectible. Inventories were sold for a total gross
profit of 13,000. Equipment was first refurbished for a cost of 8,000 cash before ultimately being sold to
a buyer for 740,000. Creditors of trade payable amounting to 7,000 condoned the amount owed to them.
Long-term debt incurred interest amounting to 1,000. Assume that all partners are insolvent, how much
cash will C receive?
a. 550,000 c. 177,267
b. 835,250 d. 272,750

11. A cash distribution plan (payment priority program) for partners M, N, and R appears below:

If 550,000 cash is to be distributed, how much will be received by the creditors, M, N, and R, respectively?
a. 0, 0, 0, 0 c. 300,000, 108,000, 58,000, 84,000
b. 0, 121,000, 187,000, 242,000 d. 300,000, 55,000, 85,000, 110,000

12. On December 31, 2023, the Statement of Financial Position of ABC Partnership with profit or loss ratio
of 5:3:2 of respective partners Accountant A, Engineer B, and Doctor C, showed the following information:

On January 1, 2024, the partners decided to liquidate the partnership in installment. All partners are
legally declared to be insolvent. As of January 31, 2024, the following transactions occurred:
i. Other assets with a carrying amount of 2,000,000 were sold at a gain of 200,000.
ii. Liquidation expenses for the month of January amounting to 100,000 were paid.
iii. It is estimated that liquidation expenses amounting to 300,000 will be incurred for the month of
February 2024.
iv. 20% of the liabilities to third persons were settled.
v. Available cash was distributed to the partners.

What is the amount of cash received by Doctor C on January 31, 2023?

 a. 520,000 c. 600,000
b. 700,000 d. 480,000

13. SCA Partnership has the following balances before liquidation. They share profits and losses in the ratio
of 40%, 40%, and 20%, respectively.

During June, some other assets were sold that resulted to a loss of 46,125. Liquidation expenses of
175,000 were paid and additional expenses amounting to 90,000 were expected to be incurred through
the following months of liquidation. Liabilities to outsiders amounting to 875,000 were paid. What is the
book value of the other assets which were sold for Doctor C to receive 555,550?
a. 2,375,000 c. 2,328,875
b. 2,130,000 d. 2,083,875

Use the following information for the next three questions:

The partnership of G, C, M, and A is being liquidated over the first few months of 2023. The trial balance at
January 1, 2023 is as follows:

Additional information:
i. The partners agree to retain 20,000 cash on hand for contingencies and distribute the rest of the
available cash at the end of each month.
ii. In January, half of the receivables were collected. Inventory that cost 75,000 was liquidated for
45,000. The land was sold for 250,000.
iii. The accounts payable was liquidated.

14. How much is the total liquidation loss that will be shared by the partners?
a. 103,000 c. 345,000
b. 325,000 d. 123,000

15. How much is the capital deficiency of A after sharing from the capital deficiency of M?
a. 4,000 c. 6,500
b. 9,000 d. 13,000

16. How much will partner C receive for the month of January?
a. 65,333 c. 45,500
 b. 68,000 d. 37,667

17. JKL Partnership engaged in steel manufacturing business had the following condensed financial position
prior to liquidation.

Assuming assets with book value of 2,800,000 were sold for 2,000,000 and that all available cash was
distributed. What amount would the remaining assets have to be sold in order for Partner J to receive a
total of 1,980,000 cash after liquidation?
a. 6,200,000 c. 4,360,000
b. 6,400,000 d. 5,560,000

Use the following information for the next four questions:

FARM TO MARKET Co. has filed for voluntary insolvency and is going to liquidate. FARM TO MARKET Co.’s
statement of financial position immediately prior to the liquidation process is shown below:

FARM TO MARKET Co.

Statement of financial position
As of December 31, 20x0
ASSETS
Current assets:
Cash 160,000
Accounts receivable 880,000
Note receivable 400,000
Inventory 2,120,000
Prepaid assets 40,000
3,600,000
Noncurrent assets:
Land 2,000,000
Building, net 8,000,000
Equipment, net 1,200,000
11,200,000
Total assets 14,800,000
LIABILITIES AND EQUITY
Current liabilities:
Accrued expenses 884,000
Current tax payable 1,400,000
Accounts payable 4,000,000
6,284,000
Noncurrent liabilities:
Note payable (secured by equipment) 1,200,000
Loan payable (secured by land and building) 8,000,000
9,200,000
Capital deficiency:
Share capital 2,000,000
Retained earnings (deficit) (2,684,000)
(684,000)
 Total liabilities and equity 14,800,000

Additional information:
The following information was determined before the start of the liquidation process:
i. Only 76% of the accounts receivable is collectible.
ii. The note receivable is fully collectible, and in addition interest of ₱40,000 is expected to be collected.
iii. The inventory has an estimated selling price of ₱1,680,000 and estimated costs to sell of ₱40,000.
iv. The prepaid assets are non-refundable.
v. The land and building have fair values of ₱8,000,000 and ₱3,200,000, respectively. However, Andrix
expects to sell both assets at a single price of ₱10,400,000. Costs to sell are negligible because the
prospective buyer agrees to shoulder all costs relating to the transfer of the property.
vi. The equipment is expected to be sold at a net selling price of ₱800,000.
vii. Administrative expenses of ₱120,000 are expected to be incurred in the liquidation.
viii. The accrued expenses include accrued salaries of ₱100,000.
ix. Interest of ₱60,000 is expected to be paid on the loan.
x. All the other liabilities are stated at their expected net settlement amounts.

18. How much are the total assets pledged to partially secured creditors?
a. 800,000
b. 3,140,000
c. 1,200,000
d. 400,000

19. How much are the total unsecured liabilities with priority?
a. 1,620,000
b. 220,000
c. 1,520,000
d. 100,000

20. What is the estimated recovery percentage of unsecured creditors without priority?
a. 75.85% c. 70%
b. 31.71% d. 24.15%

21. The statement of affairs of Darrell Putix Co. indicates that unsecured creditors without priority with total
claims of ₱720,000 may expect to recover only ₱288,000 after all the assets are sold. Among the
creditors of Darrell Putix Co. are the following:
i. Government – taxes payable of ₱400,000, inclusive of ₱80,000 assessments and surcharges.
ii. XYZ bank – loan payable of ₱4,000,000 and accrued interest of ₱200,000, backed by collateral
security with realizable value of ₱4,800,000.
iii. Alpha Financing Co. – loan payable of ₱3,200,000 backed by collateral security with realizable
value of ₱2,000,000.
iv. Mr. Bombay – loan payable of ₱1,000,000 and accrued interest of ₱200,000. No collateral
security.

How much is the expected recovery of Mr. Bombay?

a. 780,000
b. 480,000
c. 288,000
d. 0

Use the following information for the next two questions:

Farm Gate Co. is undergoing liquidation. Information on Farm Gate Co.’s assets and liabilities is shown below:

ASSETS Book value Realizable value

Assets pledged to fully secured creditors 360,000 480,000
 Assets pledged to partially secured creditors 208,000 192,000
Free assets 600,000 576,000
1,168,000 1,248,000
LIABILITIES
Unsecured liabilities with priority 288,000 288,000
Fully secured creditors 384,000 384,000
Partially secured creditors 240,000 240,000
Unsecured creditors without priority 432,000 432,000
1,344,000 1,344,000

22. What is the estimated recovery percentage of unsecured creditors without priority?
a. 89%
b. 78%
c. 80%
d. 75%

23. How much can the “unsecured creditors without priority” expect to recover from their claims?
a. 432,000
b. 345,600
c. 348,000
d. 396,000

24. The following summarizes the results of the liquidation process of Rhadvix Co.’s operations:
Gains on realization of assets 720,000
Losses on realization of assets 1,280,000
Additional assets discovered and realized during liquidation 200,000
Additional liabilities recorded and settled during liquidation 120,000
Share capital (at original book value) 2,800,000
Deficit (at original book value) 1,200,000

What is the recovery percentage of the shareholders based on the carrying amount of equity?
a. 80%
b. 70%
c. 76%
d. 75%

25. Raymund Bigie Co. owns 80% of PH Care, Inc. During the year, PH Care, Inc. filed for bankruptcy and
is about to enter into liquidation. Raymund Bigie Co. has an outstanding unsecured receivable of
₱4,000,000 from PH Care, Inc. together with an investment in subsidiary of ₱20,000,000. The statement
of affairs of PH Care, Inc. shows a 100% recovery for outside creditors and a 20% recovery for inside
creditors. How much can Raymund Bigie Co. expect to recover from its receivable?
a. 800,000
b. 4,800,000
c. 640,000
d. 0

Use the following information for the next two questions:

A, B and C formed a joint operation for the sale of assorted fruits during the Christmas season. Their transactions
during the two-month period are summarized below:

Joint operation
Nov. 5 Merchandise-A 8,500 Nov. 15 Cash sales-C 20,400
12 Merchandise-B 7,000 18 Cash sales-C 4,200
14 Freight-in-C 200 30 Merchandise-B 1,210
 Dec. 10 Purchases-C 3,500 Dec. 25 Unsold mdse. charged to A 540
22 Selling expenses-C 550

The joint arrangement provided for the division of gains and losses among A, B and C in the ratio of 2:3:5. The
joint operation is to close on December 31, 2008.

26. What is the joint operation profit?

a. (6,600) c. 6,060
b. 6,600 d. (6,060)

27. What is the amount of cash that A will receive on final settlement?
a. 9,280 c. 8,500
b. 9,712 d. 1,212

Use the following information for the next two questions:

A, B, and C formed a joint operation. The joint operators shall make initial contributions ₱10 each. Profit and loss
shall be divided equally. The following data relate to the joint operation’s transactions:

A B C
Joint operation (before closing) 8 Cr. 10 Cr. 12 Cr.
Expenses paid from JO cash 5 2 3
Value of inventory taken 5 6 4

28. How much were the sales of the joint operation?

a. 70 c. 40
b. 60 d. 90

29. How much was A’s share in the settlement?

a. 25 receipt c. 25 payment
b. 20 receipt d. 20 payment

Use the following information for the next three questions:

In 20x1, Green Beans Co. started work on three contracts. Information of the contracts is shown below:

Contract Transaction price Costs incurred Estimated costs to complete

Contract 1 500,000 375,000 -
Contract 2 700,000 100,000 400,000
Contract 3 250,000 100,000 100,000

30. The performance obligations of Green Beans Co. in all of the contracts are satisfied over time. Green
Beans Co. uses the cost-to-cost method to measure its progress in the contracts. How much is the total
revenue recognized from the contracts 20x1?
a. 865,000
b. 765,000
c. 385,000
d. 265,000
 31. The performance obligations of Green Beans Co. in all of the contracts are satisfied at a point in time
(i.e., upon completion). How much is the total revenue recognized from the contracts in 20x2?
a. 700,000
b. 575,000
c. 500,000
d. 0

Use the following information for the next two questions:

On September 1, 2023, Randy and Benny decided to combine their businesses and form a partnership. The
statement of financial position of Randy and Benny on September 1, 2023 before any adjustments is as
follows:

Randy Benny
Cash P90,000 P37,500
Accounts Receivable 185,000 135,000
Inventories 300,000 195,000
Furniture and Fixtures (net) 300,000 90,000
Office Equipment (net) 115,000 27,500
Prepaid Expenses 63,750 30,000
P1,053,750 P515,000
Accounts Payable P457,500 P180,000
Randy, Capital 596,250
Benny, Capital 335,000
P1,053,750 P515,000

They agreed to provide P5,550 and P4,050 respectively for uncollectible accounts on their accounts
receivables and found Benny’s furniture and fixture to be under depreciated by P9,000.

32. If the partners share in equity is to be equal to the net assets invested, the capital accounts of Randy
and Benny would be:
a. P596,250 and P335,000, respectively
b. P590,700 and P330,950, respectively
c. P590,700 and P321,950, respectively
d. P590,700 and P339,950, respectively

33. In the preceding number and assuming the partners agreed that the equity is to be 60% and 40% to
Randy and Benny, respectively, the capital accounts would be
a. P558,750 and P372,500, respectively
b. P558,390 and P372,260, respectively
c. P552,990 and P368,660, respectively
d. P547,590 and P365,060, respectively
Use the following information for the next two questions:
In 20x1, ABC Co. was contracted to build a railroad. The contract price is equal to the construction costs incurred
plus ₱1,200,000. However, if the project is completed within 4 years, ABC will receive an additional payment of
₱200,000. Information on the project is shown below:

20x1 20x2 20x3

Costs incurred to date 2,400,000 4,575,000 6,125,000
Estimated costs to complete 3,600,000 1,525,000 125,000

In 20x1 and 20x2, it was not highly probable that the project will be completed on time. However, in 20x3, ABC
assessed that project will be completed earlier than originally expected and thus it is now highly probable that
the incentive payment will be received.

34. How much revenue is recognized on the contract in 20x3?

a. 2,610,000
b. 2,595,000
c. 2,056,000
d. 2,022,000

35. How much profit is recognized on the contract in 20x3?

a. 506,000
b. 495,000
c. 480,000
d. 472,000

36. Which of the following is true?

a. In case there is industrial partner in a partnership, the sharing of profits and losses should be
equal
b. Division of profits should always be based on capital contribution
c. Industrial partner is not entitled to interest on capital if interest is allowed to be given to partners
d. Salary to the managing partner cannot be provided if the partnership operation resulted to a loss

37. In a partnership liquidation, how is the final allocation of business assets made to the partners?

a. According to the profit and loss ratio.

b. According to the balances of the partners’ loan and capital accounts.
c. According to the initial investments made by the partners.
d. Equally.

38. Statement 1: When a new partner enters an existing partnership by purchasing a partner’s interest, the
cash paid to the selling partner for the partnership interest is always equal to the new partner’s capital
balance.

Statement 2: All partnerships have general partners.

Statement 3: Admission of a new partner by investment is a personal transaction between the selling
partner and the buying partner. Hence, any indicated gain in the transaction is not recognized in the
partnership books.

a. All statements are true. c. Only one statement is false.

b. All statements are false. d. Only one statement is true.
39. In case of admission of a new partner by investment in the partnership, which of the following statements
is correct?

a. If there is positive asset revaluation or asset impairment, the difference between the total contributed
capital of all partners and the new agreed capitalization shall be distributed to all partners including
the new partner using the new profit or loss ratio agreement.
b. If there is negative asset revaluation (asset impairment) but without bonus, the contributed capital of
the new partner will be equal to his agreed capitalization in the new partnership.
c. If there is positive asset revaluation with bonus, the total contributed capital of all partners will be higher
than the new agreed capitalization.
d. If there is bonus but without asset revaluation, the total contributed capital of all partners will be lower
than the new agreed capitalization.

40. If existing partners acquire the equity of a withdrawing partner, in what manner do they divide the equity?

a. In any manner they choose.

b. Equally.
c. Proportionate to their residual profit and loss ratios.
d. Existing partners are not permitted to acquire the equity of a withdrawing partner.

41. If A is the total capital of a partnership before the admission of a new partner, M is the total capital of the
partnership after the admission of the new partner, I is the amount of the new partner’s investment, and
E is the amount of capital credited to the new partner, then there is

a. Goodwill to the new partner if M > (A + I) and E < I

b. A bonus to the new partner if M = A + I and E > I
c. Neither bonus nor goodwill if M > (A + I) and E > I
d. Goodwill to the old partners if M = A + I and E > I

42. Statement I: The final distribution of cash to the partners shall be made based on their profit and loss
ratio.

Statement II: The right of offset is exercised when a partner's capital account reports a debit balance and
he has at the same time a receivable from the partnership.
a. Only Statement II is correct. c. Both statements are incorrect.
b. Only Statement I is correct. d. Both statements are correct.

43. In partnership liquidation, how are partner salary allocations treated?

a. Salary allocations take precedence over the amounts due to partners with respect to their capital
interests, but not profits.
b. Salary allocations take precedence over the amounts due to partners with respect to their profits,
but not capital interests.
c. Salary allocations take precedence over creditor payments.
d. Salary allocations are disregarded.

44. A partnership is liquidating and one of the partner’s capital accounts has a deficit balance. What should
happen?

a. The partner with the deficit should contribute enough personal assets to eliminate the deficit
balance.
b. The deficit balance should be removed from the accounting records and the remaining partners
would share in any additional profits.
 c. The partner with the highest capital balance should allocate enough cash to eliminate the deficit
balance.
d. The other partners should contribute personal assets to eliminate the deficit balance.

45. In partnership liquidations, what are safe payments?

a. The amounts of distributions that can be made to the partners with assurance that such amounts
will not have to be returned to the partnership.
b. The amounts of distributions that can be made to the partners, after all creditors have been paid
in full.
c. The amounts of distributions that can be made to the partners during the liquidation based on the
partner’s contributed capital return.
d. The amounts of distributions that can be made to the partners, after all non-cash assets have
been adjusted to fair market values.

46. In relation to partnership liquidation, which of the following statements is/are correct?
I. The cash priority program can be used to distribute noncash assets, so long as the priority is followed.
II. In an installment liquidation, the safe payment schedule will also show the most vulnerable partner
in the event of liquidation.

a. Both I and II. c. Neither I nor II.

b. I only. d. II only.

47. Which of the following is first-ranked of the unsecured liabilities with priority in a bankruptcy liquidation?
a. Claims of governmental entities for various taxes or duties
b. Administrative costs
c. Claims for wages, salaries, and commissions, subject to limitations of amount and time
d. None of the foregoing

48. The accounting statement of affairs is prepared:

a. at the end of the reorganization process.
b. at the end of the liquidation process.
c. at the beginning of the reorganization process.
d. at the beginning of the liquidation process.

49. Total free assets in the statement of affairs can be computed as

a. the sum of (a) excess of realizable value of assets pledged to fully secured creditors over the
expected net settlement amount of the fully secured liabilities and (b) total realizable value of
assets not pledged as collateral security
b. Total assets measured at realizable value less the sum of (a) unsecured creditors with priority,
(b) fully secured creditors, and (c) realizable value of asset pledged to partially secured creditors.
c. realizable value of total assets less unsecured liabilities with priority
d. all of these

50. An arrangement is established by two parties and each party owns 50% voting rights of the arrangement
and the terms of the contract require that at minimum 51% voting rights are needed to exercise the control
over the arrangement.
a. Joint Control
b. No Joint Control
c. Business Combination
d. Statutory Consolidation
51. For the purposes of equity accounting for an investment in an associate, it is presumed that the investor
has significant influence over the other entity where the investor holds:
a. between 1% and 5% of the voting power of the investee;
b. between 5% and 10% of the voting power of the investee.
c. 20% or more of the voting power of the investee;
d. 50% or more of the voting power of the investee;

52. When disclosing information about investments in associates, PAS 28 Investments in Associates and
Joint Ventures, requires separate disclosure of which of the following?
I Shares in associates, in the statement of financial position.
II Share of profit or loss of associates, in the statement of profit or loss and other comprehensive
income.
III Share of any discontinuing operations, in the statement of changes in equity.
IV Shares of changes recognized directly in the associate’s equity, in the statement of changes in
equity.

a. I, II, III and IV

b. I, II and IV only
c. II, II and IV only
d. I, II and III only

53. PFRS requires joint ventures to be reported as

a. equity method investments.
b. trading securities.
c. equity method or proportionately consolidated investments.
d. available-for-sale securities.

54. Which of the following is not true about revenue recognition with respect to long-term construction
contracts?
a. Long-term construction contracts often are viewed as having a single performance obligation,
because goods and services fail the “separately identifiable” criterion.
b. Long-term construction contracts often satisfy the criteria for recognizing revenue over time.
c. Long-term construction contracts require accounting for construction in progress as well as
billings to customers.
d. Long-term construction contracts typically include multiple performance obligations because of
all the different types of goods and services included for each project.
55. Which of the following is not true about accounting for long-term construction contracts?
a. Long-term construction contracts could show a contract asset or contract liability, depending on
the relation between construction in progress and billings.
b. Billings on contracts in progress is a contra account to accounts receivable.
c. Gross profit is debited to construction in progress.
d. When a customer is billed for payment due, billings on contracts in progress is credited at the
same time accounts receivable is debited.

56. When accounting for revenue over time for a long-term contract, the percentage of completion used to
recognize revenue in the first year usually is determined by measuring:
a. Costs incurred in the first year, divided by estimated remaining costs to complete the project.
b. Costs incurred in the first year, divided by estimated total costs for the completed project.
c. Costs incurred in the first year, divided by estimated gross profit.
d. Costs incurred in the first year, divided by estimated total costs to be incurred in the remaining
years of the project.

57. Under the cost recovery method (point in time) of income recognition on long-term construction contracts:
a. The balance in the "Construction In Process" account is reported on the balance sheet as a
long-term asset until the date of completion.
 b. The accumulated amount in the "Construction In Process" account is essentially the amount of
cost of goods sold at completion date.
c. Income is accumulated in the "Construction In Process" account.
d. "Construction In Process" is reduced when billings are collected.

58. The following are the characteristics of a partnership except one, which is it?
a. Partners are co-owners of the contributed assets to the partnership
b. Partnership has a separate juridical personality separate and distinct from that of its partners
c. Liability of partners is limited to their capital contributions
d. Any of the partners can bind the partnership
59. Which of the following is true?
a. Partnership at will will be dissolved upon arrival of the date agreed upon by the partners as its
expiration
b. Depreciable assets contributed by the partner shall be recorded in the partnership books at the
adjusted cost based on fair value less accumulated depreciation
c. Accounts receivables that are deemed worthless and can no longer be collectible should be
deducted from the total amount of accounts receivables upon recording of such contribution in
the partnership books
d. None of the above
60. This method of giving compensation to partners recognizes the differences in the capital contributions
but does not take into account the time and effort that a partner may devote in running the business.
a. Salaries to partners
b. Bonus to partners
c. Interest of capital to partners
d. Sharing of profits based on agreed profit distribution