SS2 FINANCIAL ACCOUNTING

A partnership is a business owned by:

• One person

• Shareholders

• Two or more persons

• The government

The agreement that binds partners is called:

• Constitution

• Company policy

• Partnership deed

• Account book

In a partnership, profits and losses are usually:

• Paid to creditors

• Shared equally with all employees

• Shared among partners as agreed

• Not distributed

A partner who does not take active part in business is called:

• Managing partner

• General partner

• Sleeping partner

• Active partner

If partner A invests ₦40,000 and partner B invests ₦60,000, what is A's share in a profit of ₦10,000?

• ₦6,000

• ₦3,000

• ₦4,000

• ₦7,000

Dissolution of partnership means:

• Transfer of capital

• Appointment of new partners

• End of the business relationship among partners

• Change in product line

A partnership may be dissolved by:

• External audit

• Customer request

• Agreement of the partners

• Annual report

Which document is used to finalize accounts during dissolution?

• Receipt book

• Trial balance

• Realization account

• Ledger summary

When partnership is dissolved, liabilities are:

• Ignored

• Given to staff

• Paid before capital is returned

• Shared with customers

If assets are sold for ₦50,000 and liabilities are ₦20,000, what is the amount left for partners?

• ₦10,000

• ₦60,000

• ₦30,000

• ₦70,000