WorksheetsPARTNERSHIP- LIQUIDATION
Total questions: 10
Worksheet time: 5mins
This results when a partner dies and the remaining partners decide to terminate the business
dissolution
liquidation
incorporation
recognition
In liquidation , the sale of the non-cash assets is called
realization
net proceeds
gain from sale
loss from sale
When there is a capital deficiency , the effect is that
the partner's equity will increase
the cash and other assets will also be deficient
the liabilities and the partners equity will also decrease
there is no effect on the asset and liabilities
if a capital is deficient but there is a loan payable to B, the right of offset can be applied
true
false
a partner whose personal assets are less than his personal liabilities is
deficient
solvent
deficient but solvent
insolvent
a loan payable to a partner may be offset against his deficiency just as a loan receivable from a partner may be offset against his capital balance
true
false
a deficient and insolvent partner will still have a chance to receive cash from the partnership if
there is a loan payable to him which is higher than the deficiency and insolvency of the partner
there is a loan payable to him which is higher than his capital deficiency
decif he makes additional investment
if the other partners will absorb his deficiency
if the proceeds from the sale is less that the book value of the non-cash assets sold will
decrease the partnership assets but increase the partners equity
increase the partnership assets but decrease the partners equity
decrease both the partnership assets and the partners equity
increase both the partnership assets and the partners equity
the feature of unlimited liability covers all partners except
general partners
industrial partners
capitalist partners
limited partners
A deficiency occurs in a partner when
his personal assets are less than his personal liabilities
his share in the losses of the partnership is more than his capital balance
his personal assets are lesser than his capital balance
loan payable by the partnership to him than his capital balance
