Lump sum liquidation method requires that all assets are converted into cash, all liabilities are paid, and all profits and losses are charged to the partners, followed by a single distribution of cash.

partnership liquidation

Quiz
•
Business
•
University
•
Easy
TeaTi Moh
Used 6+ times
FREE Resource
20 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
t
f
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The process of removing the debit balance of a partner through his existing loan account is called exercising the right of off set.
t
f
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Dissolution always results to liquidation.
t
f
Answer explanation
Dissolution does not always result to liquidation.
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
In liquidation, cash should be distributed first to outside creditors.
t
f
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Gain or loss on realization is divided among the partners according to their capital contributions.
t
f
Answer explanation
according to P&L agreement instead of capital contributions
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The loss absorption potential is the maximum loss each partner can absorb and which can eliminate him from any cash distribution.
t
f
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
In the partnership liquidation statement, assets are generally classified as cash and non-cash assets.
t
f
Create a free account and access millions of resources
Similar Resources on Wayground
15 questions
Lesson 1: Nature and Classification of Business Organizations

Quiz
•
12th Grade - University
20 questions
Financial Management Quiz 1

Quiz
•
University
20 questions
FORMS OF BUSINESS IN MALAYSIA

Quiz
•
University
20 questions
LAW OF PARTNERSHIP (BUSINESS ENTITIES AND NATURE OF PARTNERSHIP)

Quiz
•
University
17 questions
Unit 2 Review Part A ENT

Quiz
•
9th Grade - University
20 questions
Business Ethics Quiz

Quiz
•
12th Grade - University
20 questions
BL 2 Q.3 2024

Quiz
•
University
25 questions
Partnership Accounting

Quiz
•
University
Popular Resources on Wayground
25 questions
Equations of Circles

Quiz
•
10th - 11th Grade
30 questions
Week 5 Memory Builder 1 (Multiplication and Division Facts)

Quiz
•
9th Grade
33 questions
Unit 3 Summative - Summer School: Immune System

Quiz
•
10th Grade
10 questions
Writing and Identifying Ratios Practice

Quiz
•
5th - 6th Grade
36 questions
Prime and Composite Numbers

Quiz
•
5th Grade
14 questions
Exterior and Interior angles of Polygons

Quiz
•
8th Grade
37 questions
Camp Re-cap Week 1 (no regression)

Quiz
•
9th - 12th Grade
46 questions
Biology Semester 1 Review

Quiz
•
10th Grade