Which of the following will not result in the

20. Which of the following will not result in the dissolution of a partnership?
1) Partners are incompatible and choose to cease operations.
2) Partners realize that the profit figures have failed to reach projected levels.
3) Retirement of a partner.
4) Death of a partner.
A) 1 and 2 only
B) 3 and 4 only
C) 1, 2, and 3
D) 1, 2, 3, and 4
E) Neither 1, 2, 3, or 4
Answer: E
Difficulty: Easy
[QUESTION]
21. What accounting transactions are not recorded by an accountant during liquidation?
Difficulty: Medium
[QUESTION]
22. Which of the following statements is false concerning the Schedule of Liquidation ?
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Difficulty: Medium
[QUESTION]
23. What is the preferred method of resolving a partner's deficit balance, according to the
Uniform Partnership Act ?
Difficulty: Easy
[QUESTION]
[QUESTION]
6. The Keaton, Lewis, and Meador partnership had the following balance sheet just before
entering liquidation:
C a s h $ 1 0 , 0 0 0 L i a b i l i t i e s $ 1 3 0 , 0 0
N o n c a s h a s s e t s 3 0 0 , 0 0 0 K e a t o n , c a p i t a l 6 0 , 0 0
L e w i s , c a p i t a l 4 0 , 0 0
M e a d o r , c a p i t a l
8 0 , 0 0
T o t a l $ 3 1 0 , 0 0 0 T o t a l $ 3 1 0 , 0 0
Keaton, Lewis, and Meador share profits and losses in a ratio of 2:4:4. Noncash assets were sold
for $180,000. Liquidation expenses were $10,000.
Assume that Lewis was personally insolvent and could not contribute any assets to the
partnership, while Keaton and Meador were both solvent. What amount of cash would Keaton
have received from the distribution of partnership assets?
0
0
0
0
0
A) $38,000.
B) $30,000.
C) $24,000.
D) $34,000.
E) $31,600.
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Answer: B
Difficulty: Hard
[QUESTION]