Partnership Accounts -Synoptic revision

Last updated over 5 years ago

7 questions

Note from the author:

AAT L3 Partnerships

Last updated over 5 years ago

7 questions

Note from the author:

AAT L3 Partnerships

Question 1

A partner will always have a credit balance in their current account

True

False

Question 2

Question 3

Add it to the profit figure

treat it like salary and deduct it from the profit figure before profit share calculations

treat it like salary and deduct it from the profit figure after profit share calculations

subtract it from salaries

Question 4

Question 5

Question 6

Question 7

charity

partnership

limited company

sole trader

Question 1

True

False

Question 2

Question 3

Add it to the profit figure

treat it like salary and deduct it from the profit figure before profit share calculations

treat it like salary and deduct it from the profit figure after profit share calculations

subtract it from salaries

Question 4

Question 5

Question 6

No formal requirement for final accounts

lower set up costs

ability to raise capital by share issue

lower tax rates than non incorporated business

public has access to accounts

director files a report of recent past and future trading activities

own assets separate from company assets

accounts are kept private

costs lower for year end accounts

no need to pay an auditor

Question 7

charity

partnership

limited company

sole trader

Select the options which are an advantage to a business to trade as a sole trader

No formal requirement for final accounts

lower set up costs

ability to raise capital by share issue

lower tax rates than non incorporated business

public has access to accounts

director files a report of recent past and future trading activities

own assets separate from company assets

accounts are kept private

costs lower for year end accounts

no need to pay an auditor