Question

1. Which of the following are required disclosures in interim financial statements? a. Footnote discussions of seasonal revenue, costs or expenses b. Footnote discussions of contingent items c. Footnote discussions of changes in accounting principles d. All of the above e. Both a and c

2. Which of the following categories are included in the statement of financial position? a. Assets, liabilities, and equity b. Net assets and equity c. Revenues and expenses d. Assets, liabilities and net assets

3. The partnership agreement does not include one of the following: a. Language relating to the formation, ongoing operation, and ultimate dissolution of the partnership. b. Language relating to whether the partners wish to recognize the intangible asset on the books of the partnership upon formation of the partnership c. Language relating to the way in which profit and loss is to be allocated to the partners’ Capital Accounts d. A requirement that all financial statements will be prepared in accordance with GAAP

Answer 1

1.D. all of the above.

Interim financial statements would require disclosure of;

A. Footnote discussions of seasonal revenue, costs or expenses.

B.Footnote discussions of contingent items.

C.Footnote discussions of changes in accounting principles.

2.a. assets, liabilities and equity.

The statement of financial position would contain assets, liabilities and equity.

3.d.A requirement that all financial statements will be prepared in accordance with GAAP.

Partnership deed does not have the requirement that all financial statements will be prepared in accordance with GAAP.