Top 250+ Solved Financial Accounting 2 MCQ Questions Answer
Q. An incoming partner pays his share of goodwill in cash, and profit sharing ration of oldpartner is changed, Goodwill be distributed among old partners:
a. as their old profit ratio
b. according to new ration
c. according to sacrifice ratio
d. none of these
Q. At the time of admission of a new partner, general reserve is:
a. debited to capital of old partners
b. credited to capital of old partners
c. allowed to remain is balance sheet
d. debited to current account
Q. A new partner may be admitted to a partnership:
a. with the consent of all partners
b. with the consent of two third of old partners
c. with the consent of any one of the partners
d. without consent of old partners
Q. At the time of a new partner Goodwill:
a. belongs to all partners, new and old
b. belongs only to the new partners who is going to be admitted
c. belongs only to the old partner who have credited it
d. none of the above.
Q. In the revaluation account a decrease in the value of plant and machinery:
a. appears on the debit side
b. appears on the credit side
c. appears on the debit side of good will account
d. does not appear at all
Q. In the revaluation account an increase in the value of land and building:
a. appears on the debit side
b. appears on the credit side
c. appears on the credit side of good will account
d. does not appear at all
Q. The partnership may come to an end due to the:
a. death of a partner
b. insolvency of partner
c. by giving notice
d. all of the above
Q. In case of retirement of a partner full good will is credited to the accounts of:
a. all partners
b. only retiring partner
c. only remaining partner
d. none of the above
Q. Revaluation account is operated to find out gain or loss at the time of:
a. admission of a partner
b. retirement of a partner
c. death of a partner
d. all of above
Q. Partners equity is effected due to:
a. retirement of a partner
b. admission of a partner
c. death of a partner
d. all of above
Q. The accounting procedure at the retirement of partner is valued:
a. revaluation of assets and liabilities
b. ascertaining his share of goodwill
c. finding the amount due to him
d. all of above
Q. If the remaining partner want to continue the business, after the retirement of a partner, anew partnership agreement:
a. necessary
b. not necessary
c. optioned
d. none of above
Q. An account operated to ascertain the loss or gain at the death of a partner is called:
a. realization account
b. revaluation account
c. execution account
d. deceased partner a/c
Q. Amount due to outgoing partner is shown in the balance sheet as his:
a. liability
b. asset
c. capital
d. loan
Q. The loss or gain an account of revaluation at the time of retirement of a partner is sharedby:
a. remaining partners
b. retiring partner
c. all partners
d. none of above