Question 12 In a global liquidation of a company a-All assets are paid to partne

Question

Question 12

In a global liquidation of a company

a-All assets are paid to partners based on their initial contribution, with the oldest association paid first

b-All assets are paid to the partners on the basis of equal distribution, regardless of when the member was admitted to the association

c-All assets must be made before any distribution can be made

d- All assets are paid to the partners, at the same time, it is based on the fair market value at the time they were initially donated to the association

Question 15

The following is the sequence of priorities in which the liquidation proceeds will be distributed for a company

a-The association plans, the liabilities of association, the association loans, the capital balances of the association

b-Liabilities of the association, loans of the association, balances of capital of the association

c-Liabilities of the association, loans of the association, plans of the association, balances of capital of the association

d-Liabilities of the association, capital balances of the association, loans of the association

Question 16

When the financial statements of a foreign subsidiary are translated and the local currency is the functional currency of the foreign entity, which of the following accounts is typically translated using an average rate for the reporting period?

a-Accounts payable

b-Notes to be paid in the long term

c-Earth

d-Revenue from sales

Question 17

When a partner withdraws from a partnership and the remaining partners acquire that interest

a- This may have an effect on the liquidity of the company

b-This will increase the cash flow in society

c-This will always create a goodwill for an amount equal to the original interest of the retired member in the company

d - This will cause all assets to be recorded to offset the cost of acquiring the interest of the retired member at the time of withdrawal

Question 20

You are the controller of company A that has recently merged with company B. You are required to communicate with senior management about how you would represent the merger. While doing an investigation, he finds an old accounting textbook left on the shelf by his predecessor, who retired after 30 years. Based on your readings in this book, you are thinking about using the pooling method for this transaction. This method


a-Requires that assets are only recorded at historical cost and liabilities at fair value

b-Requires that all assets be recorded at historical cost

c-Requires that all assets and liabilities be recorded at their fair value

d-It is no longer an acceptable method

Explanation / Answer

12. Option A

15. Option B

16 Option D There is no account like Earth account, accounts payables are taken of the last date of the year end. whereas notes to be paid are also adjusted at year end

17 Option C Since this will be regarded as bonus paid by the departing partner

20 Option D. This method got discontinued in 2001 by FASB

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.