Which is true about the computation of average capital

Assignment Help Financial Accounting
Reference no: EM132771018

Problem 1: When Mr. B is admitted to the partnership, the fair values of the assets he contributed exceed his initial capital balance. In this case who gets the bonus under the bonus method?

A. Mr. B gets the bonus

B. The old partners get the bonus

C. Both Mr. B and the old partners get the bonus

D. Neither Mr. B nor the old partners get the bonus

Problem 2: Which is true about the computation of average capital of partners?

A. investments increases the average capital

B. investments decreases the average capital

C. drawings increases the weighted average capital

D. the effect of investments and drawings cannot be ascertained

Reference no: EM132771018

Questions Cloud

Which is true about the computation of average capital : When Mr. B is admitted to the partnership, the fair values of the assets. In this case who gets the bonus under the bonus method?
List two body sites with no resident microbiota : Specimens are often collected from body sites that have normal flora. The suspected pathogen must be distinguished from a normal flora organism.
What is total shareholders equity at december for leslie co : On December 31, 2020, Leave sold 16,000 treasury shares at P16 per share, What is the total shareholders' equity at December 31, 2020?
Explain the requirement to reduce hospital readmissions : As a health care administrator, one of the challenges can be ensuring that federal, state, and local policies are effectively implemented within one's health.
Which is true about the computation of average capital : When Mr. B is admitted to the partnership, the fair values of the assets. In this case who gets the bonus under the bonus method?
Based on history of business ethics : Based on the history of business ethics reviewed in Chapter 1, do you think the business world is becoming more or less ethical?
What is the role of a nurse in the debate regarding vaccines : What is the role of a nurse in the debate regarding vaccines?
What method of recording mr x admission should mr z prefer : Contributes exceeds his initial capital balance. If Mr. Z will retire soon from the partnership, what method of recording Mr. X's admission should Mr. Z prefer?
What are clues that the problem : What are the "clues" that the problem can be solved with the use of the normal distribution? How do we determine the area between 2 z values?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd