Accounting Mod6

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  1. 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
  2. Limited Partnerships?
    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
  3. Limited Liability Partnership (LLP)
    Partners have unlimiited liability for own negligence and those they supervise. Limited from other partner's negligence.
  4. qualitative aspects of accounting information
    understandability, relevance, reliability, comparibility
  5. methods of recognition
    • -% of completion
    • -completed contract (recorded after total completion)
    • - collection of Cash (installment method). Divide up cash collection and profits.
  6. Constraints
    • - 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
  7. conceptual framework of accounting
    coherent system of interrelated elements that guides the development and application of accounting principles
Card Set:
Accounting Mod6
2012-04-05 08:02:23
Accounting Mod6 Partnerships

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