• Wrong document? Swap it for free
  • Written by students who passed
  • Immediately available after payment
  • Read online or as PDF
Sell
Where do you study
Your language
Document preview thumbnail
Preview 2 out of 37 pages
Exam (elaborations)

Fac 1602 Assessment 02 Semester 1 2023 85% Upwards

Document preview thumbnail
Preview 2 out of 37 pages

FAC 1602 ASSESSMENT 02 SEMESTER 1 2023

Content preview

Question 1
Which of the following statements is correct:




1.
A personal transaction is a transaction that is made between an existing partner and the partnership of
the business entity.




2.
Past financial performance indicators such as total comprehensive income in respect of previous
financial periods, are ordinarily used to determine goodwill.


3.
When revaluing an asset or liability in terms of a change in ownership structure, the current account is
used. The current account is then closed off to the accounts of the existing partners according to their
existing profit-sharing ratio.


4.
Goodwill is excluded in the calculation when determining the fair value of a partnership.




5.
The selling price of a partnership is determined by the cost price of the partnership.



Question 2
Question text
Vogel and Mazibuko are in a mining partnership with a profit-sharing ratio of 1:3 respectively. A new
partnership was formed by admitting Malikane. A 1/6 share in the profits/loss of the new partnership was
obtained by Malikane. Vogel and Mazibuko agreed to relinquish the 1/6 share according to their previous
profit-sharing ratio of 1:3. The new profit-sharing ratio is:

1.
8:16:5


2.
5:15:4


3.
3:13:2

2

, 4.
1:3:6


5.
7:18:6


Time left 1:47:41
Question 3
Not yet answered
Marked out of 1.00




Flag question
Question text
Which of the following statements is incorrect:

1.
Goodwill is subsequently measured at cost less impairment.




2.
The change in the ownership structure of a partnership can be accomplished using two accounting
procedures based on two distinct perspectives namely the legal and the going-concern perspective.




3.
Goodwill is an asset representing the future economic benefits arising from other assets that are not
capable of being individually identified and separately recognised.


4.
A transferal account is used to close off the accounting records of the existing partnership.


5.
Goodwill is a non-current tangible asset in the statement of financial position.

Clear my choice
Question 4
Not yet answered
Marked out of 1.00




3

Document information

Uploaded on
April 16, 2023
File latest updated on
April 16, 2023
Number of pages
37
Written in
2022/2023
Type
Exam (elaborations)
Contains
Questions & answers
R50,00

Wrong document? Swap it for free Within 14 days of purchase and before downloading, you can choose a different document. You can simply spend the amount again.
Written by students who passed
Immediately available after payment
Read online or as PDF

Seller avatar
Reputation scores are based on the amount of documents a seller has sold for a fee and the reviews they have received for those documents. There are three levels: Bronze, Silver and Gold. The better the reputation, the more your can rely on the quality of the sellers work.
warasmyeko
3,4
(22)
Sold
110
Followers
94
Items
34
Last sold
1 year ago



Why students choose Stuvia

Created by fellow students, verified by reviews

Quality you can trust: written by students who passed their exams and reviewed by others who've used these notes.

Didn't get what you expected? Choose another document

No worries! You can immediately select a different document that better matches what you need.

Pay how you prefer, start learning right away

No subscription, no commitments. Pay the way you're used to via credit card or EFT and download your PDF document instantly.

Student with book image

“Bought, downloaded, and aced it. It really can be that simple.”

Alisha Student

Working on your references?

Create accurate citations in APA, MLA and Harvard with our free citation generator.

Working on your references?

Frequently asked questions