A3 A partnershipO is dissolved only by the withdrawal of a partner.has unlimited life.O is dissolved upon the acceptance of a new partner.dissolution means the business must liquidate.

Understanding these nuances is crucial for anyone involved in a partnership or considering forming…

Answered: A partnership O is dissolved only by…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 15MC: When a partnership dissolves, the first step in the dissolution process is to ________. A. allocate...

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When a partnership dissolves, the last step in the dissolution process is to ________. A. allocate the gain or loss on sale based on income sharing ratio B. pay off liabilities C. sell noncash assets D. divide the remaining cash among the partners
Which of the following is true about a partnership? The old partnership ends only upon the withdrawal of a partner. The old partnership ends upon the acceptance of a new partner. If a new partner is admitted to the partnership, the old partnership must liquidate. Partnerships have an unlimited life. Only one owner is allowed in a Partnership.
True or false The dissolution of a partnership occurs only when the partnership is terminating operations and going out of business.
PARTNERSHIP DISSOLUTION True or False _______1. Insolvency, insanity, or incapability to perform by a partner may cause the dissolution of the firm. _______2. Dissolution and liquidation mean the same thing. _______3. Asset revaluation may be recognized for the current partners when the new equity is greater than the original partners' equity. _______4. Dissolution may not necessarily change the basic function or operation of the partnership. _______5. Dissolution always immediately causes the termination of a firm. _______6. An admission of a new partner causes a change in the ownership interest of the original partners. _______7. Ownership may be transferred at will by anyone partner without consulting the other partners. _______8. Bonus is, in effect, transfer of capital from one partner to another partner. _______9. Recognizing undistributed profit or loss share of the partners at dissolution date is necessary in effecting dissolution. _______10. ABC Partnership decided to admit D…
Dissolution of a partnership a.implies that the business cannot continue with a new group of partners. b.occurs when there is any change in the members of the partnership. c.implies that the business cannot form a different ownership structure. d.implies that the business operations will halt.
Partnership dissolution can be in the following ways except? Select one: a. Wish of any partner b. Notice by a partner c. Bankruptcy d. Death of a partner
No need to explain. The following events dissolve a partnership except: a. admission of a partner b. change of the partnership name c. conversion of a partnership to a corporation d. impairment of partnership assets Before dissolution takes effect, liabilities should be restated at their a. fair market values b. present values c. liquidating values d. historical values
1. This resells when a partner dies and the remaining partners decide to terminate the business. a. dissolutionb. liquidationc. incorporationd. recognition
In the liquidation of a partnership, a loan payable to a partner: a) May be offset against that partners’ capital account balance before liquidation commences. b) Will not advance the time of payment to that partner during the liquidation. c) Has the same priority as amounts payable to outside creditors of the partnership. d) Must be closed to that partners’ drawing account.
During liquidation, a partners’ capital account balance drops below zero. What should happen? a. The other partners should file a legal suit against the partner with the deficit balance. b. The partner with the highest capital balance should contribute sufficient assets to eliminate the deficit. c. The deficit balance should be removed from the accounting records with only the remaining partners sharing in future gains and losses. d. The partner with a deficit should contribute enough assets to offset the deficit balance.
A partnership liquidation occurs when O a. the assets are sold, liabilities paid, and business operations terminated O b. the ownership interest of one partner is sold to a new partner O c. a new partner is admitted O d. a partner dies
1. During liquidation, a partners’ capital account balance drops below zero. What should happen? a. The partner with a deficit should contribute enough assets to offset the deficit balance. b. The other partners should file a legal suit against the partner with the deficit balance. c. The partner with the highest capital balance should contribute sufficient assets to eliminate the deficit. d. The deficit balance should be removed from the accounting records with only the remaining partners sharing in future gains and losses. 2. If the total debits in the statement of realization and liquidation exceeds the total credits, there is a.none of these b. net loss for the period c. either net gain for the period d.net gain for the period 3. In the liquidation of a partnership, a loan payable to a partner: a. Must be closed to that partners’ drawing account. b.Has the same priority as amounts payable to outside creditors of the partnership. c.Will not advance the time of payment to that…

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A partnership O is dissolved only by the withdrawal of a partner. has unlimited life. O is dissolved upon the acceptance of a new partner. dissolution means the business must liquidate.