FAR-1

What is asset?

these are resources controlled by the entity as a result of past events and form which future economic benefits are expected to flow to the Entity

What is Mutual Agency?

Any partner can bind the other partners to a contract if he is acting within his express or implied authority.

What is Equity?

The residual interest in the assets of the entity after deducting all it's liabilities.

Liquidation partner

A partner who is in-charge to the unfinished business of the it's liquidation.

Income / Profit

Revenues less expenses

Managing partner

A partner who has the highest salary

Normal balance

The side of the account that is positive or increasing.

Statement of Cash flows

A financial statement that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources.

Unlimited Liability

All partners, except limited partners, including industrial partners, are personally liable for all incurred by the partnership.

Notes to financial statements

A component of financial statement that discloses the detailed assumptions made by accountants when preparing a company’s: income statement, balance sheet, statement of changes of financial position or statement of retained earnings.

Partnership

A Contract between two or more person bind themselves to contribute money, property, or industry to a common fund, with the intention of dividing the profits among themselves.

General Professional Partnership

A partnership which was organized for the practice of profession.

General partnership

A partnership with one limited partners

Limited partnership

A partnership which composed of majority limited partners

Mutual contribution

There cannot be a partnership without the contribution of money, property, or industry to a common fund.