chapter 4 Flashcards
In cases of dissolution, the old partnership creditors will still be the creditors of the new partnership if the old partnership continues under a new partnership agreement.
True
The partnership dissolution can occur even without the violation of the agreement.
True
Only death of a partner will cause dissolution of the partnership
False
Upward asset revalution will occur if the fair market value of the assets is less than its book value.
False
If there is an upward or downward asset revaluation, the allocation of the capital accounts will be based on the new profit or loss ratio of the partnership
False
Total Agreement Capital (TAC) is the total amount of new capital established or set by the partners for the newly formed partnership
True
In partnership dissolution without liquidation, the business legal life is terminated as well as its economic life.
False
Asset revaluation refers to the transfer of capital from one partner to another in consideration for a good reputation or earning capicity of the latter.
False
In dissolution, “Bonus” is an account title that is either debited or credited.
False
Bonus will always be given to the remaining partners if a partner decides to resign from the partnership since bonus is a reward for approving the resignaTion.
False
In admission by investment, If the total agreed capital is greater than the total contributed capital, it will lead to revaluation decrease of exisiting assets.
False
When a new partner is admitted in the partnership by purchase, the price paid by new partner is recorded in the partnership books.
False
The capital investment of a partner who is selling his capital can only sell at the amount exactly indicated on the book of partnership accounts
False
The capital investment of a partner who is selling his capital can only sell at the amount exactly indicated on the book of partnership accounts
False
