In case of dissolution of the partnership, if a partner's capital account shows a debit balance and he subsequently turns out to be insolvent, what will be the accounting treatment? (Consider the case laws)
A. The loss has to be borne in the capital ratio by the solvent partners
B. The loss has to be borne in the existing profit sharing ratio
C. The loss has to be borne in the adjusted profit sharing ratio after insolvency
D. The loss has to be borne in the sacrificing ratio of the solvent partners
E. The loss has to be equally distributed among the solvent partners
Answer: Option A
Accounting provides information on
A. Cost and income for managers
B. Company's tax liability for a particular year
C. Financial conditions of an institutions
D. All of the above
The long term assets that have no physical existence but are rights that have value is known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
Patents, Copyrights and Trademarks are
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
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