Martha is a 40 percent partner in the MMM Partnership, with an outside basis of $50,000. MMM distributes $40,000 cash and accrual-basis accounts receivable with a basis and fair market value of $20,000. Martha does not recognize gain or loss on the distribution and takes a basis in the cash of $40,000 and a basis in the receivables of $10,000.
Answer the following statement true (T) or false (F)
True
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Terry has noticed that his colleagues at work frequently take breaks and leave the office to take personal phone calls. These behaviors are
a. not allowed in the handbook. b. norms. c. unproductive. d. roles.
A contingent liability is recorded if it is probable and can be reasonably estimated
a. True b. False Indicate whether the statement is true or false
Arax Group of Companies (AGC) has a group incentive plan for its employees. Under this plan, the company sets aside a portion of its profits and divides it among employees. Which of the following plans has the company adopted?
A. A profit-sharing plan B. A defined-benefit pension plan C. An employee stock ownership plan D. A gainsharing plan
ASOBAT emphasized which of the following in its definition of accounting?
a. The creative ability of the accountant b. The work and skill of the accountant c. The needs of the users of accounting information d. Recording transactions