IIA Exam IIA-ACCA Topic 10 Question 22 Discussion

Actual exam question for IIA's IIA-ACCA exam

Question #: 22
Topic #: 10

An internal auditor was asked to review an equal equity partnership In one sampled transaction Partner A transferred equipment into the partnership with a self-declared value of $10,000 and Partner B contributed equipment with a self-declared value of $15 000 The capital accounts of each partner were subsequently credited with S12,500. Which of the following statements is true regarding this transaction?

AThe capital accounts of the partners should be increased by the original cost of the contnbuted equipment.

BThe capital accounts should be increased using a weighted average based on the current percentage of ownership

CNo action is needed as the capital account of each partner was increased by the correct amount

DThe capital accounts of the partners should be increased by the fair market value of their contribution

Show Suggested Answer

Suggested Answer: C

by Pamella at May 08, 2022, 03:48 AM

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