Accounting Mod6

• 1. Assoc. of Individuals
• 2. Co-ownership of property
• 3. Division of Income
• 4. Limited Life
• 5. Mutual Agency - each partner represents group, ie can buy property
• 6. Unlimited Liability

5 and 6 together can be dangerous

General Partners have unlimited liability, provides work/experience and can represent partnership

Limited Partners normally give cash or assets, no services

REIT's are LPs

Partners have unlimiited liability for own negligence and those they supervise. Limited from other partner's negligence.

understandability, relevance, reliability, comparibility

• -% of completion
• -completed contract (recorded after total completion)
• - collection of Cash (installment method). Divide up cash collection and profits.

• - Cost-benefit, the value of providing info is more than cost of providing it
• - materiality, if item doesn't make difference in decision making GAAP not followed. ie. staplers

coherent system of interrelated elements that guides the development and application of accounting principles