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    Which of The Following Procedure Is Not Necessary in Effecting A Dissolution

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    JAHNHANNALEI MARTICIO
    The document contains 5 multiple choice questions about partnership accounting procedures related to dissolution, admitting new partners, and revaluing assets. The correct answers are: 1) a, 2) b, 3) b, 4) b, 5) d. All statements provided are true regarding events that can cause dissolution of a partnership and the effects of admitting new partners.

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    Which of The Following Procedure Is Not Necessary in Effecting A Dissolution

    Uploaded by

    JAHNHANNALEI MARTICIO
    1K views1 page
    The document contains 5 multiple choice questions about partnership accounting procedures related to dissolution, admitting new partners, and revaluing assets. The correct answers are: 1) a, 2) b, 3) b, 4) b, 5) d. All statements provided are true regarding events that can cause dissolution of a partnership and the effects of admitting new partners.

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    accounting

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    Which of the Following Procedure is Not Necessary in Effecting a Dissolution

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    The document contains 5 multiple choice questions about partnership accounting procedures related to dissolution, admitting new partners, and revaluing assets. The correct answers are: 1) a, 2) b, 3) b, 4) b, 5) d. All statements provided are true regarding events that can cause dissolution of a partnership and the effects of admitting new partners.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    1K views1 page

    Which of The Following Procedure Is Not Necessary in Effecting A Dissolution

    Uploaded by

    JAHNHANNALEI MARTICIO
    The document contains 5 multiple choice questions about partnership accounting procedures related to dissolution, admitting new partners, and revaluing assets. The correct answers are: 1) a, 2) b, 3) b, 4) b, 5) d. All statements provided are true regarding events that can cause dissolution of a partnership and the effects of admitting new partners.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    1. Which of the following procedure is not necessary in effecting a dissolution?

    a. Revaluing partnership assets


    b. Recognizing undistributed profit or loss share of the partners at dissolution date
    c. Revising the partners’ equity
    d. Closing the partnership books

    2. A, one of the partners in ABC partnership, decided to buy the share of B in the partnership.
    Which of the following statements is not true?

    a. Partnership assets will remain the same


    b. There is no need to revise partners’ equity
    c. Partners’ equity in total amount will not change
    d. Partnership profit and loss ratio will change

    3. When admitting a new partner by investment, a bonus to old partners:

    a. Is usually unjustified because book values clearly reflect partnership net worth
    b. Is sometimes justified because goodwill may exist and it is not reflected in the accounts
    c. Results if debit to cash is more than the new partner’s capital credit
    d. Results if debit to cash is equal to the new partner’s capital credit

    4. An upward adjustment of partnership assets is implied before a new partner is admitted

    a. This is prohibited by GAAP


    b. When the new partner’s capital credit is greater than his or her investment of assets in
    the firm
    c. When recorded book values are greater than market values
    d. When total contributions is lesser than total agreed equity and the new partner’s capital
    credit is the same as his or her investment of assets in the firm

    5. Which of the following statements is true?

    a. Insolvency, insanity or incapability to perform by a partner may cause dissolution of the


    firm
    b. An admission of a new partner causes a change in ownership interest of the original
    partners
    c. Dissolution may not necessarily change the basic function or operation of the
    partnership
    d. All of the above statements are true

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