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Characteristics of Partnerships
- 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
Limited Liability Partnership (LLP)
Partners have unlimiited liability for own negligence and those they supervise. Limited from other partner's negligence.
qualitative aspects of accounting information
understandability, relevance, reliability, comparibility
methods of recognition
- -% 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
conceptual framework of accounting
coherent system of interrelated elements that guides the development and application of accounting principles
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