1.

value: 4 points The partnership of Clapton, Seidel, and Thomas was insolvent and will be unable to pay $30,000 in liabilities currently due. What recourse was available to the partnership's creditors?
-2-2

they must present equal claims to the three partners as individuals. they must try obtain a payment from the partner with the largest capital account balance. they cannot seek remuneration from the partners as individuals. they may seek remuneration from any partner they choose.

Cleary, Wasser, and Nolan formed a partnership on January 1, 2010, with investments of $100,000, $150,000, and $200,000, respectively. For division of income, they agreed to (1) interest of 10% of the beginning capital balance each year, (2) annual compensation of $10,000 to Wasser, and (3) sharing the remainder of the income or loss in a ratio of 20% for Cleary, and 40% each for Wasser and Nolan. Net income was $150,000 in 2010 and $180,000 in 2011. Each partner withdrew $1,000 for personal use every month during 2010 and 2011.
0

2. value: 4 points What was Nolan's total share of net income for 2010?
-2-2

$63,000. $53,000. $58,000. $29,000. $51,000. ask instructorcheck my work

0

3.

value: 4 points What was Wasser's capital balance at the end of 2010?
-2-2

$150,000. $160,000. $165,000. $213,000. $201,000. ask instructorcheck my work

0

4. value: 4 points What was the total capital balance for the partnership at December 31, 2010?
-2-2

$600,000 $564,000 $535,000 $523,000 $545,000 ask instructorcheck my work

0

5. value: 4 points What was the remainder portion of net income allocated to Nolan for 2011?
-2-2

$45,440 $58,040 $70,040

$72,000 $82,040 ask instructorcheck my work

0

6. value: 4 points What was Nolan's capital balance at the end of 2011?
-2-2

$139,420. $246,000. $276,540. $279,440. $304,040. ask instructorcheck my work 7. value: 4 points The appropriate format of the December 31, 2010 closing entry for John & Hope Limited Liability Partnership, whose two partners had withdrawn their salaries from the partnership during the year is:

-2-2

A Above.

B Above. C Above. D Above. The capital account balances for Donald & Hanes LLP on January 1, 2011, were as follows:

Donald and Hanes shared net income and losses in the ratio of 3:2, respectively. The partners agreed to admit May to the partnership with a 35% interest in partnership capital and net income. May invested $100,000 cash, and no goodwill was recognized.
0

8. value: 4 points What is the balance of Hane's capital account after the new partnership is created?
-2-2

$84,000. $100,000. $140,000. $176,000. $200,000. 9. value: 4 points The Abrams, Bartle, and Creighton partnership began the process of liquidation with the following balance sheet:

Abrams, Bartle, and Creighton share profits and losses in a ratio of 3:2:5. Liquidation expenses are expected to be $12,000. If the noncash assets were sold for $234,000, what amount of the loss would have been allocated to Bartle?

-2-2

$43,200. $46,800. $40,000. $42,400. $43,100. 10. value: 4 points The Keaton, Lewis, and Meador partnership had the following balance sheet just before entering liquidation:

Keaton, Lewis, and Meador share profits and losses in a ratio of 2:4:4. Noncash assets were sold for $180,000. Liquidation expenses were $10,000. Assume that Lewis was personally insolvent and could not contribute any assets to the partnership, while Keaton and Meador were both solvent. What amount of cash would Keaton have received from the distribution of partnership assets?
-2-2

$38,000. $30,000. $24,000. $34,000. $31,600. The Henry, Isaac, and Jacobs partnership was about to enter liquidation with the following account balances:

Estimated expenses of liquidation were $5,000. Henry, Isaac, and Jacobs shared profits and losses in a ratio of 2:4:4.
0

11. value: 4 points What amount of cash was available for safe payments, based on the above information?
-2-2

$30,000. $85,000. $25,000. $35,000. $40,000. 12. value: 4 points Dancey, Reese, Newman, and Jahn were partners who shared profits and losses on a 4:2:2:2 basis, respectively. They were beginning to liquidate their business. At the start of the process, capital balances were as follows:

Which one of the following statements is true for a predistribution plan?

-2-2

The first available $16,000 would go to Newman. The first available $20,000 would go to Dancey. The first available $8,000 would go to Jahn. The first available $8,000 would go to Newman. The first available $4,000 would go to Jahn. 13. value: 4 points

What is the preferred method of resolving a partner's deficit balance, according to the Uniform Partnership Act?
-2-2

Partners never have a deficit balance. The other partners must contribute personal assets to cover the deficit balance. The partnership must sell assets in order to cover the deficit balance. The partner with a deficit balance must contribute personal assets to cover the deficit balance. The partner with a deficit balance contributes personal assets only if those personal assets exceed personal liabilities. 14. 4 points Which standard issued by the Governmental Accounting Standards Board in 1999 requires two distinct sets of financial statements for state and local governments?
-2-2

GASB Statement No. 32. GASB Statement No. 33. GASB Statement No. 34. GASB Statement No. 35. GASB Statement No. 36. ask instructorcheck my work 15. Proprietary funds are
-2-2

Funds used to account for the activities of a government that are carried out primarily to provide services to citizens. Funds used to account for a government's ongoing organizations and activities that are similar to those operated by for-profit organizations. Funds used to account for monies held by the government in a trustee capacity. Funds used to account for all financial resources except those required to be accounted for in another fund. Funds used to account for revenues that have been legally restricted as to expenditure. 16. value: 4 points Fiduciary funds are

-2-2

Funds used to account for the activities of a government that are carried out primarily to provide services to citizens. Funds used to account for a government's ongoing organizations and activities that are similar to those operated by for-profit organizations. Funds used to account for monies held by the government in a trustee capacity. Funds used to account for all financial resources except those required to be accounted for in another fund. Funds used to account for revenues that have been legally restricted as to expenditure.

17. value: 4 points Special Revenue funds are

-2-2

Funds used to account for the activities of a government that are carried out primarily to provide services to citizens. Funds used to account for a government's ongoing organizations and activities that are similar to those operated by for-profit organizations. Funds used to account for monies held by the government in a trustee capacity. Funds used to account for all financial resources except those required to be accounted for in another fund. Funds used to account for revenues that have been legally restricted as to expenditure.

18. value: 4 points For fund-based financial statements, what account is credited when a piece of equipment is leased on a capital lease?
-2-2

Equipment - Capital Lease. Encumbrances - Long Term. Encumbrances - Lease Obligations. Capital Lease Obligation. Other Financing Sources - Capital Lease

19. value: 4 points Which one of the following is a criterion for identifying a primary government?
-2-2

It has an appointed board of directors. It is fiscally dependent. It is a local government. It has a separately elected governing body. It must prepare financial statements

20. value: 4 points Which of the following is not a criterion of a capital lease?
-2-2

The lease transfers ownership of the property to the lessee by the end of the lease term. The present value of the minimum lease payments equals or exceeds 90 percent of the fair value of the leased property, net of lessor's investment tax credit. The lease contains an option to purchase the leased property at a bargain price. The lease contains an option to renew. The lease term is equal to or greater than 75 percent of the estimated economic life of the leased property.

21. value: 4 points A five-year lease is signed by the City of Wachovia for equipment with a seven-year life. The asset will be returned to the lessor at the end of the lease. The present value of the lease is $20,000, and annual payments of $5,411.41 are payable beginning on the date the lease is signed. The interest portion of the second payment is $1,604.75. The equipment is to be used in City Hall and was purchased from appropriated funds of the General Fund. What entry should be made for the government-wide financial statements on the date the lease

is signed?

-2-2

Entry A. Entry B. Entry C. Entry D. Entry E. 22. The city operates a public pool where each person is assessed a $2 entrance fee. Which fund is most appropriate to record these revenues?
-2-2

General Fund. Enterprise Fund. Special Revenue Fund. Internal Service Fund. Capital Projects Fund. 23. value: 4 points A city starts a solid waste landfill during 2010. When the landfill was opened the city estimated that it would fill to capacity within 5 years and that the cost to cover the facility would be $1.5 million which will not be paid until the facility is closed. At the end of 2010, the facility was 20% full, and at the end of 2011 the facility was 45% full. On government-wide financial statements, which of the following are the appropriate amounts to present in the financial statements for 2011?

-2-2

Both expense and liability will be zero. Expense will be $300,000 and liability will be $600,000. Expense will be $600,000 and liability will be $600,000. Expense will be $675,000 and liability will be $600,000. Expense will be $375,000 and liability will be $675,000. 24. value: 4 points Reciprocal transfers where both parties give and receive something of value are
-2-2

contributed services. unconditional promises to give. endowment transactions. exchange transactions. required contributions. 25. value: 4 points Which account would be credited in recording a gift of medicine to a nursing home from an outside party?
-2-2

Nonoperating Gain - Contributions. Contractual Adjustments. Patient Service Revenues. Drugs and Medicines. Nonoperating Revenues - Contribution. 26. value: 4 points In accruing patient charges for the current month, which one of the following accounts should a hospital credit?

-2-2

Accounts Payable. Deferred Revenue. Unearned Revenue. Patient Service Revenues. Accounts Receivable. 27. value: 4 points Unconditional transfers of cash or other resources to an entity in a voluntary nonreciprocal transaction is the GAAP definition for
-2-2

miscellaneous revenues. contributions. unconditional promises to give. exchange transactions. pledges.

28. value: 4 points Which one of the following is a voluntary health and welfare organization?
-2-2

Charity raising money for underprivileged children. Nursing home. Clinic. Hospital. Preschool. 29. value: 4 points

Which of the following is not a question individuals ask of not-for-profit organizations in considering whether to make a contribution?
-2-2

Will donated funds be used effectively by the organization to accomplish its purpose? Will the donated funds be wasted? How much should this organization receive? Is this organization profitable? Is contributing to this charity a wise allocation of resources? 30. value: 4 points What are the three categories of net assets required by GAAP in reporting a not-for-profit organization?
-2-2

Unrestricted, Temporarily Restricted, and Permanently Restricted. Unrestricted, Restricted, and Fund Balance. Restricted, Permanently Restricted, and Fund Balance. Unrestricted, Temporarily Restricted, and Fund Balance. None of the above.