What's the main advantage of partners sharing management roles?
Answer
(B)
Improved skill-sharing and decision-making
11
What is the effect on the accounting equation when a company pays salaries to its employees?
Answer
(B)
Decreases assets, decreases equity.
12
What is the primary purpose of the manufacturing account?
Answer
(C)
To determine the cost of production.
13
Which of the following is usually the first step to perform when preparing financial statements?
Answer
(C)
Prepare the income statement.
14
Which of the following can constitute factory overhead?
Answer
A
B
15
Which items are shown in the Receipts and Payments account?
Answer
A
B
16
How is the net profit or loss of a partnership determined?
Answer
(A)
By subtracting expenses from revenues.
17
What is the effect of a partner's share of a net loss on their capital account?
Answer
(B)
The capital account decreases.
18
The partnership agreement usually includes provisions for:
Answer
A
B
C
D
19
In the accounting equation, what does 'equity' represent?
Answer
(C)
The owner's stake in the business.
20
Which of the following items is NOT usually considered when preparing an income statement for a partnership?
Answer
(C)
Partners' salaries
21
Which of the following are advantages of a partnership?
Answer
B
C
22
The main goal of the income statement is:
Answer
(B)
To state the net profit.
23
What is the formula to calculate cost of goods manufactured?
Answer
(A)
Beginning WIP + Direct Materials + Direct Labor + Factory Overhead - Ending WIP
24
What is the effect of reducing closing inventory on cost of sales?
Answer
(B)
Decreases cost of sales
25
What is the impact of a withdrawal by the owner of cash from the business?
Answer
(C)
Decreases assets and decreases owner's equity.
26
What does the Statement of Changes in Partners' Equity show?
Answer
A
B
C
27
Which account is debited when a partner withdraws cash from the business for personal use?
Answer
(B)
Drawings Account.
28
What is the primary function of the manufacturing account?
Answer
(B)
To calculate the cost of production.
29
What is the effect on the accounting equation if a company purchases supplies on credit?
Answer
(A)
Assets increase, liabilities increase
30
Which of the following is an example of a direct material?
Answer
(B)
Steel used to build a car
31
How are profits and losses allocated among the partners?
Answer
(B)
According to the partnership agreement.
32
What information is presented in the Statement of Changes in Equity?
Answer
A
B
C
33
What are the components of the accounting equation?
Answer
A
B
C
34
What is the effect of recording an adjustment for accrued salaries on the statement of financial position?
Answer
(C)
Increases liabilities and decreases owner's equity.
35
What is a key characteristic that distinguishes a partnership from a corporation?
Answer
(C)
Unlimited liability of partners.
36
What is the effect on the partnership's assets when a partner contributes cash to the business?
Answer
(B)
Assets increase.
37
What does the term 'limited liability' mean in the context of a limited company?
Answer
(A)
Shareholders are only liable for the amount they invested.
38
Which of the following factors is *not* usually present in incomplete records?
Answer
(C)
Highly detailed records of all cash and bank transactions.
39
What is the result when the business receives cash for goods sold but the revenue recognition principle dictates it should not be immediately recognized?
Answer
(C)
Debit Cash and credit Unearned Revenue.
40
What is the type of account that holds drawings?
Answer
(B)
Drawing account
41
What does the term "capital" represent in the context of a partnership?
Answer
(B)
The partners' equity or ownership in the partnership.
42
Which of the following is an example of an indirect cost?
Answer
(C)
Factory rent
43
What are the main purposes for creating a partnership?
Answer
(C)
To pool resources and expertise.
44
What is the partnership agreement?
Answer
(B)
A legal document.
45
Which of the following is an example of a current liability?
Answer
(C)
Accounts Payable
46
What are some examples of current liabilities?
Answer
A
B
C
47
What does the term 'Cost of Goods Sold' represent?
Answer
(A)
The cost of producing goods available for sale during a period.
48
Which of the following are reasons to make adjustments to financial statements? (Select all that apply)
Answer
A
C
D
49
If the club has a deficit, what effect does this have on its accumulated fund?
Answer
(C)
Decreases the accumulated fund.
50
Which of the following is NOT a typical component of manufacturing overhead?
