
Partnership Liquidation
Quiz
•
Business
•
University
•
Practice Problem
•
Hard
Roselyn Sagcal
Used 4+ times
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15 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which partner receives the initial cash distribution under the cash distribution program?
The partner with the large capital balance
The partner with the largest profit and loss ratio
The partner with the largest loss absorption potential
The partner with the largest loan balance
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
In a liquidation, the final distribution of cash to partners should be on the basis of their income ratios.
True
False
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
If a partner has a capital deficiency and does not have the personal resources to eliminate it,
the creditors will have to absorb the capital deficiency.
the other partners will absorb the capital deficiency on the basis of their respective capital balances.
the other partners will have to absorb the capital deficiency on the basis of their respective income sharing ratios.
neither the creditors nor the other partners will have to absorb the capital deficiency.
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
When this happens, there will be a sale of non-cash assets, what do you call the termination of business?
Realization
Termination
Liquidation
Dissolution
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following will not be a step in the process of liquidation?
Pay partners for selling their interest
Converting or selling all remaining properties and non-cash assets into cash with the gain or loss on conversion allocated to all the partners
Paying partnership liabilities and liquidation expenses
Distributing the remaining cash in payment of the partners’ (for loan and capital balances including profit share)
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Payments to creditors and partners should be made in the following order:
I. Those owing to partners for their capital
II. Those owing to outside creditors (other than the partners’)
III. Those owing to partners for their share in the profits
IV. Those owing to the partners other than their capital balances and share in the profit
I, II, III, IV
II, I, III, IV
II, IV, I, III
I, IV, III, II
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
When a partner becomes insolvent, the claim against his separate properties shall be ranked in the following order:
I. Owing to partnership creditor
II. Owing to personal creditor
III. Owing to other partners for contribution made
I, II, III
II, I, and III
III, I, II
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