Question

1. FASB requires the disclosure of information on an enterprise’s operations in different industries for (1) the current period only (2) each interim period presented (3) each annual period presented

A. 1

B. 2

3. Both 2 and 3

4. Both 1 and 2

Which of the following is an advantage of a partnership?

A. Mutual agency

B. Less complicated set-up

C. Unlimited liability

D. None of these

Answer 1

1.Answer:each interim period presented.SFAS No. 131 requires the disclosure of information on an enterprise's operations in different industries for each interim period presented . This provision was cited as one of the most important improvements needed by the AICPA Special Committee on Financial Reporting (SFAS No. 131, p.50). Financial statement users contended that, to be timely, segment information is needed more often than annually and that the difficulties of preparing it on an interim basis could be overcome (SFAS No.131, p.98).

2.Answer :Less complicated set-up. partnerships are relatively easy to set up. Step One: Choose a Name ;Step Two: Determine Which State to Register;Step Three: Next, determine the specifics of how the partnership will be managed, how much each partner will invest, and how the profits will be shared;Step Four: Draft a Partnership Agreement;Step Five: Employer Identification Number & Bank Account

Once you have completed all the steps above, you will be well on your way to operating a successful partnership.