MCQ Quiz - Practice Questions

MCQ Quiz

Question 1

In dissolution, what is the primary action regarding the firm's assets?

Question 2

What happens to the business during dissolution?

Question 3

What is the purpose of selling the firm's assets during dissolution?

Question 4

After repaying liabilities, what happens to any surplus money?

Question 5

If there is a deficit after repaying liabilities, how is it handled?

Question 6

Which of the following is NOT a typical activity during dissolution?

Question 7

Which ratio is NOT calculated during dissolution?

Question 8

Are goodwill entries made during dissolution?

Question 9

Is a new balance sheet prepared during dissolution?

Question 10

Are entries made in the partner's current account during dissolution?

Question 11

Which account are all assets transferred to during dissolution?

Question 12

Which of the following assets is NOT transferred to the Realisation Account?

Question 13

What is the journal entry to transfer assets to the Realisation Account?

Question 14

Where are fictitious assets transferred to?

Question 15

What is the journal entry for transferring fictitious assets?

Question 16

Which of the following is a type of fictitious asset?

Question 17

How is a debit balance in a partner's capital account treated?

Question 18

Where is the cash and bank balance transferred to?

Question 19

On which side of the Cash/Bank account is the opening balance transferred to?

Question 20

Which of the following liabilities is NOT transferred to the realisation account?

Question 21

Where are reserves and accumulated profits transferred to?

Question 22

What is the journal entry for transferring liabilities to the Realisation Account?

Question 23

On which side of the partner's capital account are reserves and accumulated profits transferred?

Question 24

In what ratio are reserves and accumulated profits transferred to the partner's capital account?

Question 25

How is a partner's capital account balance on the liabilities side treated?

Question 26

On which side of the Realisation Account are liabilities transferred?

Question 27

On which side of the Realisation Account are assets transferred?

Question 28

How are Partner Current Account balances transferred during dissolution?

Question 29

What is the journal entry if there is a debit balance in the Partner Current Account?

Question 30

What is the journal entry if there is a credit balance in the Partner Current Account?

Question 31

Which of the following is a possible treatment of assets on dissolution?

Question 32

Which of the following is a possible treatment of liabilities on dissolution?

Question 33

What is the journal entry for assets sold in the market?

Question 34

What is the journal entry when a partner takes over an asset?

Question 35

What happens when an asset is settled against a liability?

Question 36

What is the journal entry for a liability paid by the firm?

Question 37

What is the journal entry for a liability paid by a partner?

Question 38

What is the first step in the dissolution process out of the following?

Question 39

What is the final step in the dissolution process out of the following?

Question 40

Which account is used to record the sale of assets during dissolution?

Question 41

What happens to accumulated losses during dissolution?

Question 42

How are accumulated profits distributed among partners?

Question 43

If a partner takes over an asset, how is it recorded?

Question 44

If the firm pays a liability, which account is debited?

Question 45

If a partner pays a liability, which account is credited?

Question 46

What is the purpose of preparing a Realisation Account during dissolution?

Question 47

How is the profit or loss on realisation distributed among the partners?

Question 48

What is the significance of closing all books of accounts during dissolution?

Question 49

When liabilities are paid by firm then In realization A/c it is written on

Question 50

When assets are paid by firm then In realization A/c it is written on