Reference no: EM132774729

Problem 1: Under the Conceptual Framework, 'increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants', is the definition of:

Select one:

a. assets.
b. income.
c. contributions.
d. equity.

Problem 2: How is the allocation of partnership profits affected by drawings?

Select one:

a. Drawings must be deducted from partners' salaries.
b. Drawings only affect profit allocation if the partnership agreement provides for interest on drawings.
c. Drawings must be added back to profits before they are allocated.
d. Drawings must be deducted from profits before they are allocated.