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This set of Financial Accounting 2 Multiple Choice Questions & Answers (MCQs) focuses on Financial Accounting 2 Set 6
Q1 | Retirement or death of a partner.
- is dissolution of partnership agreement
- is dissolution of a firm
- may or may not be a dissolution of partnership agreement
- none of above
Q2 | If all the partners, but one are insolvent it is:
- dissolution of an agreement
- dissolution of firm
- may or may not cause dissolution
- none of above
Q3 | If all the partners, but one, are solvent it is:
- dissolution of partnership agreement
- dissolution of firm
- may or may not cause dissolution
- none of above
Q4 | At the time of dissolution:
- all the assets are transferred to realization a/c
- only current assets are transferred to realization a/c
- non cash assets are transferred to realization a/c
- only liquid and current asset are transferred to realization a/c
Q5 | At the time of dissolution non – cash assets are credited with:
- market value
- book value
- as the agreed amount among the partners
- cost or market whichever is low
Q6 | If a partner takes over an asset of the firm, his capital account:
- will be debited with the amount as agreed
- will be credited with the market value of the asset
- will be debited with book value of the asset
- none of above
Q7 | Loss on realization is distributed among partners:
- according to profit and loss ratio
- according to capital ratio
- as decided among them
- none of above
Q8 | Loss on realization is:
- debited to partners capital a/c
- credited to partners capital a/c
- debited to realization a/c
- credited to realization a/c
Q9 | When all partners are insolvent creditors will be:
- paid fully
- paid rate ably
- taken over by the partners
- paid by government
Q10 | The persons who have entered into a partnership business are individually called:
- realization a/c
- partners capital a/c
- sundry debtors
- provision for bad debts a/c
Q11 | The persons who have entered into a partnership business are individually called:
- vender
- agents
- partners
- a firm
Q12 | If no provision is made in agreement regarding the duration of the partnership:
- limited partnership
- partnership at will
- none
- particular partnership
Q13 | A person who declares by word of mouth as partner of the firm is called:
- active partner
- estople partner
- dormant partner
- nominal partner
Q14 | A person who receives a share of profits from one of the regular partner is called:
- secret partner
- quasi
- partner in profit only
- sub – partner
Q15 | The agreement among partners which set out the terms on which they had agreed to forma partnership is called:
- partnership deed
- partnership at will
- none of these
- arbitration clause
Q16 | Every partner has a right to be consulted in all matters affecting the business of:
- sole-tradership
- partnership
- jsc
- both (a) and (b)
Q17 | For the firm interest on drawing is:
- expense
- income
- liability
- none
Q18 | A credit balance on a partner’s current A/c is.
- fixed capital
- part of capital
- a current asset
- long – term liability
Q19 | Old profit sharing ratio minus new profit sharing ration is equal to:
- sacrificing ratio
- ratio of gain
- capital ratio
- none
Q20 | A is drawing Rs. 500 regularly on the 16th of every month, he will have to pay interest ina year on Rs. 6000 for the total period of @ given rate of interest):
- 5 months
- 6 months
- 7 months
- 12 months
Q21 | For any decrease in the value of liability, revolution A/c is to be:
- debited
- credited
- both (cr.) & (dr.)
- neither (dr.) & (cr.)
Q22 | Revolution A/c is a:
- real a/c
- personal a/c
- cash a/c
- nominal a/c
Q23 | When good will is brought in cash by new partner, method is known as:
- premium method
- revolution method
- memorandum revolution method
- none
Q24 | Section 37 of partnership act provided interest on the amount left by retiring or decreasedpartner at:
- 5%
- 10%
- 6%
- bank rate
Q25 | When a partner dies, firm will receive the:
- 1/2 amount of policy
- 1/4 amount of policy
- 3/4 amount of policy
- full amount of policy