Under the UPA, After Dissolution

question 52

Multiple Choice

Under the UPA, after dissolution:

• A) the partnership must be liquidated.
• B) the remaining partners have the right to continue the partnership if the majority of them agree.
• C) the remaining partners have the right to continue the partnership if the partnership was dissolved in contravention of the partnership agreement.
• D) the partnership must be liquidated only if the dissolution was caused by the expulsion of a partner in accordance with the partnership agreement.

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Definitions:

Revenue Accounts

Accounts that track the income generated from a company's primary operations and activities.

Expense Accounts

Financial accounts used to track money spent or costs incurred by a business in its operational activities.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent ones, thereby preparing the books for the next period.

Income Summary

An account used in the closing process during the accounting cycle that summarizes revenues and expenses before transferring the net income or loss to retained earnings.