FAC2602 ASSIGNMENT 2 QUIZ SEMESTER 1 ANSWERS 2024

FAC2602
ASSIGNMENT 2 QUIZ ANSWERS 2024




FAC2602 ASSIGNMENT 2 QUIZ
SEMESTER 1 ANSWERS 2024

, FAC1602

1.Which one of the following alternatives is correct?

a.
Since a partnership is a legal entity, the ownership of a partnership is vested in the
partners, and not in the partnership.

b.
When a change in the ownership structure of a partnership occurs, a new partnership
agreement is entered into by the new partners which causes the existing partnership to
continue with its business operations without any interruptions.

c.
Since partnerships are not governed by a law requiring that IFRS be applied, it is not
possible to introduce a standardised accounting procedure according to which changes in
the ownership structure of partnerships ought to be recorded.

d.
From the legal perspective, the activities of a dissolved and a subsequent new partnership
are not separately accounted for and reported on.

e.
The retirement of a partner from a partnership does not require the calculation of a new
profit-sharing ratio but a simple reallocation of a retired partner’s share.

2. Question text
Which one of the following alternatives is correct?

a.
The selling price of the partnership business is determined by the value of its assets.

b.
The fair value of the assets of a partnership is equal to the total equity of a partnership.

c.
When recording the valuation adjustments, if the value of a liability is decreased, the
valuation account is credited with the amount of the decrease.

d.