In the Process of Liquidation,a Partnership Firm Sells Its Non-Cash

question 131

Multiple Choice

In the process of liquidation,a partnership firm sells its non-cash assets of a book value of $55,000,for $73,000.Which of the following will be included in the entry to record the sale of assets at liquidation?

• A)Gain on Disposal will be credited by $73,000.
• B)Gain on Disposal will be debited by $73,000.
• C)Gain on Disposal will be credited by $18,000.
• D)Gain on Disposal will be debited by $18,000.

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Definitions:

Cooperation Agreement

A formal agreement between two or more parties to work together on a project or towards a common goal, outlining the terms of collaboration and shared responsibilities.

Mutual Interest

A shared concern or advantage that is beneficial to all parties involved in a particular situation or agreement.

Organic Organizations

A flexible and adaptive organizational structure that allows for quick decision-making processes and decentralized authority.

Bureaucratic Features

Characteristics of a bureaucratic organization include a hierarchical structure, formal rules and regulations, specialization, and an impersonal relationship between its members.