answer only

1.. When a partner withdraws taking assets that are less than his capital balance,*

1 point

a. the remaining partners receive a bonus

b. no bonus results.

c. the remaining partners owe the withdrawing partner the difference.

d. the withdrawing partner receives a bonus

2.. Which would lead to a legal dissolution of a partnership?*

1 point

a. Demise of a partner

b. Withdrawal of a partner

c. Admission of a partner

d. All of the above

3.. Which of the following is not a valid cause for partnership dissolution?*

1 point

a. retirement of one of the partners

b. admission of new partner

c. death of a partner

d. marriage between partners

4. A partnership is said to be insolvent when*

1 point

a. At least one partner is insolvent

b. At least one partner's capital account has a credit balance

c. Its liabilities exceed its assets

d. Its assets exceeded its liabilities

5.. Assets need to be reappraised when*

1 point

a. a new partner is admitted to the partnership through purchase of interest,

b. a partner leaves the partnership.

c. profits and losses are being distributed.

d. the partnership is liquidated

6.. In installment liquidation computation, a partnership loan payable to the partner is*

1 point

a. Added to the other regular liabilities of the partnership

b. Added to the balance in the partner's capital account

c. Deducted from the balance in the partner's capital account

d. Ignored during the calculation

7.. In installment liquidation, each cash installment is distributed:*

1 point

a. In the partner's profit and loss ratio

b. In the ratio of partner's capital account balances

c. As agreed to by the partners

d. As if no more cash would be collected anymore

8.. In a partnership liquidation,*

1 point

a. partners' loans are paid first before creditors.

b. creditors are paid first before partners' loans

c. partners' capital balances are paid first before partners' loans.

d. partners' capital balances are paid first before creditors

9.. During partnership liquidation, the final allocation of the assets to partners should be?*

1 point

a. Made equally

b. According to the profit or loss ratio

c. According to the final capital account balances

d. According to the initial investment made by each of the partners

10.. Which of the following instances would not dissolve a partnership?*

1 point

a. Death of a partner

b. Bankruptcy of a partner

c. Retirement of a partner

d. Approved annulment proceedings of a partner