Top 250+ Solved Financial Accounting 2 MCQ Questions Answer
Q. On the retirement of a partner any reserve being should be transferred to the capitalaccount of:
a. all partners in the old profit sharing ratio
b. remaining partners in the new profit sharing ratio
c. neither the retiring partner, nor the remaining partner
d. none of above
Q. Retirement or death of a partner.
a. is dissolution of partnership agreement
b. is dissolution of a firm
c. may or may not be a dissolution of partnership agreement
d. none of above
Q. If all the partners, but one are insolvent it is:
a. dissolution of an agreement
b. dissolution of firm
c. may or may not cause dissolution
d. none of above
Q. If all the partners, but one, are solvent it is:
a. dissolution of partnership agreement
b. dissolution of firm
c. may or may not cause dissolution
d. none of above
Q. At the time of dissolution:
a. all the assets are transferred to realization a/c
b. only current assets are transferred to realization a/c
c. non cash assets are transferred to realization a/c
d. only liquid and current asset are transferred to realization a/c
Q. At the time of dissolution non – cash assets are credited with:
a. market value
b. book value
c. as the agreed amount among the partners
d. cost or market whichever is low
Q. If a partner takes over an asset of the firm, his capital account:
a. will be debited with the amount as agreed
b. will be credited with the market value of the asset
c. will be debited with book value of the asset
d. none of above
Q. Loss on realization is distributed among partners:
a. according to profit and loss ratio
b. according to capital ratio
c. as decided among them
d. none of above
Q. Loss on realization is:
a. debited to partners capital a/c
b. credited to partners capital a/c
c. debited to realization a/c
d. credited to realization a/c
Q. When all partners are insolvent creditors will be:
a. paid fully
b. paid rate ably
c. taken over by the partners
d. paid by government
Q. The persons who have entered into a partnership business are individually called:
a. realization a/c
b. partners capital a/c
c. sundry debtors
d. provision for bad debts a/c
Q. The persons who have entered into a partnership business are individually called:
a. vender
b. agents
c. partners
d. a firm
Q. If no provision is made in agreement regarding the duration of the partnership:
a. limited partnership
b. partnership at will
c. none
d. particular partnership
Q. A person who declares by word of mouth as partner of the firm is called:
a. active partner
b. estople partner
c. dormant partner
d. nominal partner
Q. A person who receives a share of profits from one of the regular partner is called:
a. secret partner
b. quasi
c. partner in profit only
d. sub – partner