Accounting Final

The liquidation of a partnership is a process containing the following steps

1. Sell noncash assets for cash and recognize a gain or loss on realization 2. Allocate the gain or loss realized on the sale of non-cash assets to the partners of their income ratios 3. Pay partnership liabilities in cash 4.

Which one of the following events would not require a formal journal entry on a corporation's books?

2 for 1 stock split

Which of the following would not be recorded in the entry for the formation of a partnership?

Accumulated depreciation

The partnership of Bher and Dhillips reports net income of $120, 000. The partners share equally in income and losses. The entry to record the partners' share of net income will include a

Credit to Bher, Capital for $60,000

Evergreen Manufacturing Corporation purchased 4,000 shares of its own previously issued $10 par common stock for $92, 000. As a result of this event,

Evergreen's total stockholders' equity decreased $92,000

The order of presenration of activities on the statement of cash flows

Operating, investing, and financing

If Vickers Company issues 4,000 shares of $5 par value common stock for $140,000

Paid-In Capital in Excess of Par will be credited for $120,000

If a corporation declares a 10% stock dividend on its common stock, the account to be debited date of declaration is

Stock Dividends

A correction in income of a prior period involves either a debit or credit to the Retained Earnings account

True

A loss on sale of equipment is added to net income in determining cash provided by operations under the indirect method

True

The statement of cash flows is a required statement that must be prepared along with an income statement, balance sheet, and retained earnings statement.

True

The total cost of borrowing is increased only if the

bonds were issued at a discount

In the balance sheet, mortgage notes payable are reported as

both a current and a long-term liability

The journal entry to record an installment payment on a long-term mortgage notes payable

both a current and a long-term liability

A partner's share of net income is recognized in the accounts through

closing entries

Dividends Payable is classified as a

current liability

A partnership

must file an information tax

Bond interest paid is

the same whether bonds sell at a discount or a premium

In the liquidation of a partnership, any gain or loss realized on the sale of noncash assets should be allocated

to the partners on the basis of their income ratios