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39.It refers to a type of partnership wherein all partners are liable to the creditors pro-rata up to the extend of personal or separate assets after the partnership's assets are exhausted. a. ₱118,000 b. ₱120,000 c. ₱130,000 d. ₱144,000

B

42.In the absence of agreement as to the distribution of profit, how shall the partnership profitbe distributed to the partners? a. The industrial partner shall receive a share equivalent to the least share of a capitalist partners while the capitalist partners shall share based on capital contribution ratio b. The industrial partner shall receive a just and equitable share and the remainder shall be distributed to the capitalist partners on the basis of capital contribution ratio. c. The profit shall be distributed on the basis of loss contribution ratio which may have been agreed upon by the partners. d.The profit shall be distributed equally to all partners including the industrial partner.

B

45.Which of the following statements pertains to partnership dissolution? a. It refers to the process of converting the non-cash assets of the partnership and distributing the total cash to the creditors and the remainder to the partners. b. It refers to the change in the relation of the partners caused by any partner ceasing to be associated in the carrying on of the partnership. c. It refers to the extinguishment of the juridical personality of the partnership. d.It refers to the end of the life of the partnership

B

49.If a partner who retired from the partnership receives less than the capital balance before retirement which also resulted in a decrease in the capital balance of remaining partners, which is correct? a. The retiring partner receives a bonus from the remaining partner. b. An impairment loss is recognized before retirement. c. Revaluation surplus is recognized before retirement. d.The retiring partner gives a bonus to the remaining partner.

B

62.The person who assumes full co-ownership of a partnership including unlimited liability is a. sole proprietor. b. shareholder c. limited partner d.general partner

B

38.He refers to a partner who contributes not only money and property but also industry to the newly formed partnership. a. Industrial partner b. Nominal partner c. Capitalist-industrial partner d.Capitalist partner

C

40.Regina, Jessica, and Nataly entered into a contract of partnership with a total capital expenditure of P5,000. The parties failed to register their articles of co-partnership with the Securities and Exchange Commission. a. The contract of partnership is void because the law provides that when the capital contributionsis at least P3,000 it must be registered with Securities and Exchange Commission. b. The contract of partnership will bind the third persons. c. The contract of partnership remains to be valid. d.The partnership business does not obtain juridical personality for failure to register with Securities and Exchange Commission.

C

41.Which of the following transactions shall not affect the capital balance of the partner? a. Share of a partner in the partnership's net loss b. Receipt of bonus by a partner from another partner based on the agreement. c. Advances made by the partnership to a partner. d.Additional investment by a partner to the partnership

C

44.Which of the following will decrease the capital balance of a partner? a. Share in partnership profit b. Receipt of share in revaluation surplus from a partnership property, plan, and equipment c. Drawing made by a partner d.Advances made by a partner to the partnership

C

48.In case of the admission of a new partner in an existing partnership through investment to the partnership, which of the following scenarios will result in a bonus to the new partner and asset revaluation? a. The total contributed capital of all partners is equal to the total agreed capital of a new partnership while the agreed capital of new partner is higher than the amount he has contributed. b. The total contributed capital of all partners is more than the total agreed capital of new partnership while the agreed capital of the new partner is lower than the amount he has contributed. c. The total contributed capital of all partners is less than the total agreed capital of new partnership while the agreed capital of the new partner is higher than the amount he has contributed. d.The total contributed capital of all partners is more than the total agreed capital of new partnership while the total agreed capital of old partners is equal to the amount they contributed.

C

54.What is the nature of liability of limited partners as to limited partnership debts or obligations? a. They are liable equally up to the extent their separate assets after the partnership assets are exhausted. b. They are liable pro-rata up to the extent of their separate assets after the partnership assets are exhausted. c. They are liable pro-rata up to the extent of their capital contribution only. d.They are liable equally up to the extent of their capital contribution only

C

28.If the partnership agreement does not specify how income is to be allocated, profits and lossshould be allocated a. Equally. b. In proportion to the weighted average of capital invested during the period. c. Equitably so that partners are compensated for the time and effort expended on behalf of the partnership. d.In accordance with their capital contributions.

D

36.Which of the following concerning the formation of the partnership business is correct? a. Philippine Financial Reporting Standard (PFRS) allows recognition of goodwill arising from the formation of partnership. b. The juridical personality of the partnership arises from the issuance of certification of registration. c. The parties may become partners only upon contribution of money or property but not of industry or service. d.The capital to be credited to each partner upon formation may not be the amount

D

43.In the absence of agreement as to the distribution of loss, how shall the partnership loss bedistributed to the partners? a. The loss shall be distributed equally to all partners including the industrial partner. b. The industrial partner shall be exempted from partnership loss while the capitalist partners shall share equally. c. The industrial partners shall be exempted from partnership loss while the capitalist partners shall be distributed on the basis of capital contribution ratio. d.The industrial partner shall be exempted from partnership loss while the capitalist partners shall be distributed in accordance with the profit agreement ratio.

D

47.Which of the following statements is correct when a new partner is admitted to an existing partnership by purchasing a portion of a capital interest of an existing partner? a. It will result in revaluation or impairment of existing assets of the partnership. b. The partnership will recognize gain or loss in the transfer of capital from one partner to another partner. c. The partnership is not dissolved by the admission of a new partner by purchase. d.It will just result in credit to the capital newly admitted partner with corresponding debit to capital of the selling partner.

D

52.In the liquidation of a limited partnership, which of the following credits shall be paid last? a. Those owing to third persons. b. Those owing to limited partners c. Those owing to general partners for their share in profits. d.Those owing to partners for their capital contribution.

D

53.What is the nature of liability of general partners as to partnership debts or obligations? a. They are liable equally up to the extent of their separate assets after the partnership assets are exhausted. b. They are liable pro-rata up to the extent of their separate assets after the partnership assets are exhausted. c. They are liable pro-rata up to the extent of their capital contribution only. d.They are liable solidarily up to the extent of their separate assets after the partnership assets are exhausted.

D

61.Which of the following is NOT part of the major considerations in accounting for the equityof a partnership? a. Accounting for investments to the partnership b. Division of profits c. Admission of a new partner d.Hiring of employees

D

63.When a partner invests assets other than cash into a partnership, these assets should be listed on the Statement of Financial Position at a. Their carrying value b. The value the investing partner assigned to them c. Their original cost d.Their fair market value

D

67. A partner assigned his partnership interest to a third party. Whichstatement best describes the legal ramifications to the assignee? a. The assignment of the partnership interest does not entitle the assignee to partnership assets upon a liquidation. b. The assignment dissolves the partnership. c. The assignee has the right to share in the management of the partnership. d.The assignee does not become a partner but has the right to share in future partnership profitsand to receive the proper share of partnership assets upon liquidation.

D

69.If the partnership agreement provides a formula for the computation of a bonus to the partners, the bonus would be computed a. next to last, because the final allocation is the distribution of the profit residual. b. before income tax allocations are made. c. after the salary and interest allocations are made. d.in any manner agreed to by the partners.

D

70.In a limited partnership, a general partner a. is excluded from management. b. is not entitled toa bonus at the end of the year. c. has limited liability for partnership debit. d. has unlimitedliability for partnership debit. a. is excluded from management. b. is not entitled to a bonus at the end of the year. c. has limited liability for partnership debit. d.has unlimited liability for partnership debit.

D

72. A partner that is not on the management and known to the public a. Ostensible partnership b. Secret partnership c. Silent partnership d. Dominant partnership

D

51.In the liquidation of a general partnership, which of the following credits shall be paid first? a. Those owing to third persons. b. Those owing to partners other than capital and profits. c. Those owing to partners for their capital contributions. d.Those owing to partners for their share in profits.

A

71. A partnership were all partners are general partner a. General partnership b. Limited partnership c. General limited partnership d. None of the above

A

23. When property other than cash is invested in a partnership, at what amount should the noncash property be credited to the contributing partner's capital account? a. Fair value at the date ofcontribution. b. Contributing partner's original cost. c. Assessed valuation for property tax purposes. d.Contributing partner's tax basis.

A

37.Under the generally accepted accounting principles in the Philippines, what is the acceptable reason when the amount credited to a partner is greater than the amount actually contributed by such a partner during partnership formation? a. Recognition of goodwill by virtue i b. ₱4,110. c. ₱4,250. d.₱4,870.

B

46.Which of the following will not result in the dissolution of a partnership? a. Insolvency of the partnership b. Admission of a new partner in an existing partnership. c. Assignment of an existing partner's interest to a third person. d.Retirement of partner.

C

50.It refers to the process of converting the non-cash assets of the partnership and distributingthe total cash to the creditors and the remainder to the partners. a. Dissolution b. Termination c. Liquidation d.Operation

C