Question

QUESTION 1

The journal entry to record the amortisation of an intangible asset would require a debit to an expense account and a credit to:

		A) An asset account.
		B) A liability account.
		C) A contra-asset account.
		D) A revenue account. QUESTION 2 A standard partnership agreement will specify that profits are shared:
		A) According to a fixed formula
		B) Equally
		C) In a mutually agreed way
		D) Based on the work done in the partnership, capital contributed and residual shared fairly

Answer 1

1. A) An asset account.

To record annual amortization expense, We debit the amortization expense account and credit the intangible asset for the amount of the expense.

2. B) Equally

A standard partnership agreement will specify that profits are shared their profits as well as losses equally.