Reference no: EM132934131

Problem 1: Among the choices, what adjustment is not adjusted in computing the interest of the retiring or withdrawing partner that is usually measured by his capital balance before his retirement or withdrawal?

Option 1: errors in net income in prior years
Option 2: changes in the valuation of all assets and liabilities
Option 3: profit or loss after the date of the partner's withdrawal or retirement
Option 4: profit or loss from the operation from the last closing date of the date of his retirement or withdrawal

Problem 2: What entry is included if a merchandise is invested by an entity under a joint operation agreement?

Option 1: Credit to merchandise inventory of the Joint Operator who contributed merchandise
Option 2: Credit to merchandise Inventory of all the Joint Operators
Option 3: Credit to Joint Operation under the books of the party investing the merchandise
Option 4: Debit to Joint Operation under the books of the Joint Operators other than the party who invested