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nstruction: Encircle the letter of the corresponding correct answer. 1. The process of winding-up the business activity is converting no cash, paying its liabilities and distribution of cash and the remain individual partners- a) realization c) liquidation

nstruction: Encircle the letter of the corresponding correct answer. 1. The process of winding-up the business activity is converting no cash, paying its liabilities and distribution of cash and the remain individual partners- a) realization c) liquidation

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Multiple Choice Instruction: Encircle the letter of the corresponding correct answer. 1. The process of winding-up the business activity is converting non-cash assets into cash, paying its liabilities and distribution of cash and the remaining assets to individual partners- a) realization b) dissolution c) liquidation d) none of these 2. When the partnership's non-cash assets are realized at less than its book value during the liquidation process, it results to a - a) gain on realization b) loss on realization c)odeficiency transactions d) none of these 3. When a partner develops a debit balance in his capital, but such partner has a loan to the partnership, he may exercise the doctrine of-
Transcribed Image Text:Multiple Choice Instruction: Encircle the letter of the corresponding correct answer. 1. The process of winding-up the business activity is converting non-cash assets into cash, paying its liabilities and distribution of cash and the remaining assets to individual partners- a) realization b) dissolution c) liquidation d) none of these 2. When the partnership's non-cash assets are realized at less than its book value during the liquidation process, it results to a - a) gain on realization b) loss on realization c)odeficiency transactions d) none of these 3. When a partner develops a debit balance in his capital, but such partner has a loan to the partnership, he may exercise the doctrine of-
Partnership: Dissolution with Liquidation a) right of offset b) right to seizure c) partner's right d) none of these 4. The first priority to be paid when there is cash available in the liquidation process, be it in lump sum or installment type- a) outside creditors b) partner's loan c) partner's capital d) none of these 5. In liquidation by installment, the partner who receives cash when there is cash available is the one - a) who can sell the biggest portion of non-cash asset b) who has a negligible amount of liability c) who can absorb the share of theoretical or possible loss d) none of these 6. In liquidation by installment, final cash settlement among the partners- a) ratio agreed by the partners b) partner's profit and loss ratio c) partner's capital balance d) none of these
Transcribed Image Text:Partnership: Dissolution with Liquidation a) right of offset b) right to seizure c) partner's right d) none of these 4. The first priority to be paid when there is cash available in the liquidation process, be it in lump sum or installment type- a) outside creditors b) partner's loan c) partner's capital d) none of these 5. In liquidation by installment, the partner who receives cash when there is cash available is the one - a) who can sell the biggest portion of non-cash asset b) who has a negligible amount of liability c) who can absorb the share of theoretical or possible loss d) none of these 6. In liquidation by installment, final cash settlement among the partners- a) ratio agreed by the partners b) partner's profit and loss ratio c) partner's capital balance d) none of these
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