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

question 129

Multiple Choice

In the process of liquidation,a partnership firm sells its non-cash assets with 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:

Purchase

The act of buying goods or services, involving an exchange of money or value to acquire ownership or use rights.

Radio Commercial

An advertising message broadcast over radio stations to reach a wide audience, promoting products, services, or brands.

Share Of Customer

The percentage of an individual customer's purchasing that a company captures in the products and services it offers.

Purchase Dollars

The amount of money spent by consumers or organizations on acquiring goods or services.