Exam (elaborations)
FAC1602 ASSIGNMENT 02 (QUIZ) DUE 10APRIL 2024
- Course
- FAC1602 (FAC1602)
- Institution
- University Of South Africa (Unisa)
FAC1602 ASSIGNMENT 02 (QUIZ) DUE 10APRIL 2024
[Show more]
Content preview
FAC1602 ASSESSMENT 2 -QUIZ1.Which one of the following alternatives is correct?
, a.
Since a partnership is a legal entity, the ownership of a partnership is vested in the
partners, and not in the partnership.
b.
When a change in the ownership structure of a partnership occurs, a new partnership
agreement is entered into by the new partners which causes the existing partnership to
continue with its business operations without any interruptions.
c.
Since partnerships are not governed by a law requiring that IFRS be applied, it is not
possible to introduce a standardised accounting procedure according to which changes in
the ownership structure of partnerships ought to be recorded.
d.
From the legal perspective, the activities of a dissolved and a subsequent new partnership
are not separately accounted for and reported on.
e.
The retirement of a partner from a partnership does not require the calculation of a new
profit-sharing ratio but a simple reallocation of a retired partner’s share.
2. Question text
Which one of the following alternatives is correct?
a.
The selling price of the partnership business is determined by the value of its assets.
b.
The fair value of the assets of a partnership is equal to the total equity of a partnership.
c.
When recording the valuation adjustments, if the value of a liability is decreased, the
valuation account is credited with the amount of the decrease.
d.
To ensure that compliance is followed, the financial statements of partnerships must not
be prepared according to IFRS.
3. Which one of the following alternatives is incorrect?
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller HOPEACADEMY. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R55,00. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67096 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now