Questions from College Accounting

Q: Name three or more events, developments, or situations that indicate

Name three or more events, developments, or situations that indicate impairment of property, plant, and equipment may exist.

Q: Which of these, if any, is not “real property

Which of these, if any, is not “real property”? a. land b. a building c. a motor home being used as an office d. pavement for a parking lot

Q: Explain the use of a drawing account in a partnership.

Explain the use of a drawing account in a partnership.

Q: Does a partnership continue to exist after the death of a partner

Does a partnership continue to exist after the death of a partner? Explain.

Q: Does a partnership pay federal income tax? Explain.

Does a partnership pay federal income tax? Explain.

Q: Why are assets of an existing sole proprietorship revalued when they are

Why are assets of an existing sole proprietorship revalued when they are transferred to a partnership?

Q: Is Allowance for Doubtful Accounts brought forward from the general ledger of

Is Allowance for Doubtful Accounts brought forward from the general ledger of a sole proprietorship when the firm’s assets and liabilities are being transferred to the partnership? Why?

Q: How does the balance sheet of a partnership differ from that of

How does the balance sheet of a partnership differ from that of a sole proprietorship?

Q: What is the advantage of a limited partnership?

What is the advantage of a limited partnership?

Q: Are partners’ salaries considered to be expenses of the partnership? Explain

Are partners’ salaries considered to be expenses of the partnership? Explain.