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Financial Accounting and Reporting > Partnership Operation > Flashcards

Partnership Operation Flashcards

1
Q

PROFITS/NET INCOME
According to the stipulation / agreement

A

PROFIT SHARING

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2
Q

PROFITS/NET INCOME
According to their CAPITAL CONTRIBUTION
*The capital balances at the time of partnership formation.

A

ORIGINAL

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3
Q

LOSSES/NET LOSS
According to the stipulation / agreement
*Even the industrial partner shall share in the losses to abide in the stipulation made by ALL PARTNERS.

A

LOSS SHARING

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4
Q

LOSSES/NET LOSS
According to the stipulation / agreement
*The industrial partner will not have any share in the losses.

A

PROFIT SHARING

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5
Q

LOSSES/NET LOSS
According to their CAPITAL CONTRIBUTION
*The industrial partner will not have any share in the losses.

A

ORIGINAL

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6
Q

Partnerships classified according to the liabilities of the partnership
General Partners
*Liability - Unlimited - the creditors can GO BEYOND the contribution
of the partner

A

General Partnership

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7
Q

Partnerships classified according to the liabilities of the partnership
At least 1 General Partner and the rest can
be limited partners
> Contribution - CASH OR NON-CASH ASSETS
*Liability - Limited - the creditors can only DEMAND UP to the CONTRIBUTION.

A

Limited Partnership

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8
Q

Capital transaction where the owner withdraws resources from the business for personal use.

A

Drawing

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9
Q

Bonus is given when the partnership has ___ ______

A

NET INCOME / PROFIT

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10
Q

Reduction of capital balance of the partner by getting resources from the partnership
*The intention is to change the partner’s interest in the partnership.

A

Permanent Withdrawals

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11
Q

Actual compensation of earnings for partners

A

Temporary Withdrawals / Drawings

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12
Q

Refers to the number of months that the transaction is outstanding / existing.

A

Weight

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13
Q

BONUS FORMALUE
Bonus before deducting bonus

A

B = Net Income x Bonus Rate

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14
Q

BONUS FORMALUE
Bonus after deducting bonus

A

B = Net Income x Bonus Rate / 100% + Bonus Rate

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15
Q

BONUS FORMALUE
Bonus after tax

A

B = Net Income x Bonus Rate x Tax Complement / 1 - Tax Rate x Bonus Rate

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16
Q

BONUS FORMALUE
Bonus after tax and bonus

A

B = Net Income x Bonus Rate x Tax Complement / 1 - Tax Rate x Bonus Rate + Bonus Rate

17
Q

ROUNDING OFF OF THE DAYS
If 1 to 15 days

A

Round it off to 1st Day of the Current Month

18
Q

ROUNDING OFF OF THE DAYS
Round it off to the 1st Day of the NEXT month

A

If 16 to end of the month

19
Q

Compute the Bonus - AFTER DEDUCTING THE BONUS

A

Net Income Based = Net Income - Salaries - Interest

Financial Accounting and Reporting (4 decks)

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