Self Assessment Quizzes

CHAPTER 28: Section 2 Liquidation of a Partnership

	1.	The first step in liquidating a partnership is

		a.	all partnership creditors are paid
		b.	all noncash assets are sold for cash
		c.	all gains or losses from sale of noncash assets are distributed to the partners according to the partnership agreement
		d.	all cash is distributed to the partners based on the final balance in the partners` accounts

	2.	The second step in liquidating a partnership is

		a.	all partnership creditors are paid
		b.	all noncash assets are sold for cash
		c.	all gains or losses from sale of noncash assets are distributed to the partners according to the partnership agreement
		d.	all cash is distributed to the partners based on the final balance in the partners` accounts

	3.	The third step in liquidating a partnership is

		a.	all partnership creditors are paid
		b.	all noncash assets are sold for cash
		c.	all gains or losses from sale of noncash assets are distributed to the partners according to the partnership agreement
		d.	all cash is distributed to the partners based on the final balance in the partners` accounts

	4.	When receivables are sold at a loss, the partners`

		a.	withdrawal accounts are debited
		b.	withdrawal accounts are credited
		c.	capital accounts are credited
		d.	capital accounts are debited

	5.	The fourth step in liquidating a partnership is

		a.	all partnership creditors are paid
		b.	all noncash assets are sold for cash
		c.	all gains or losses from sale of noncash assets are distributed to the partners according to the partnership agreement
		d.	all cash is distributed to the partners based on the final balance in the partners` accounts