multiple choice – please put the whole answer instead of putting a…
Question Answered step-by-step multiple choice – please put the whole answer instead of putting a… multiple choice- please put the whole answer instead of putting a letter 1. Statement 1: Voluntary liquidation is when the insolvent corporation, through its board of directors, voluntarily applies a petition to a court of law to undergo liquidation.Statement 2: Involuntary liquidation is when three or more creditors of the insolvent corporation file a petition to a court of law for the liquidation of the corporation. Only statement 1 is true Both statements are true Both statements are false Only statement 2 is true 2. Statement 1: The investment made by the new partner in admission by purchase is part of the total contributed capital of the partnership.Statement 2: The investment made by the new partner in admission by investment is part of the total contributed capital of the partnership. Only statement 2 is true Only statement 1 is true Both statements are false Both statements are true 3. Statement 1: Fully secured creditors always receive 100% of their claims.Statement 2: Unsecured liabilities with priority always receive 100% of their claims. Both statements are true Only statement 2 is true Only statement 1 is true Both statements are false 4. Statement 1: Partnership may be formed by two individuals who don’t have businesses previously.Statement 2: Partnership may be formed by two sole proprietors. Both statements are true Only statement 2 is true Both statements are false Only statement 1 is true 5. Statement 1: Corporation can only be liquidation through operation of law.Statement 2: The difference between total free assets and unsecured liabilities without priority is called estimated deficiency to unsecured creditors without priority. Only statement 1 is true Only statement 2 is true Both statements are true Both statements are false 6. Statement 1: One of the characteristics of a Partnership is having an unlimited liability.Statement 2: One of the characteristics of a Partnership is having a limited life. Only statement 1 is true Only statement 2 is true Both statements are true Both statements are false 7. Statement 1: The cash settlement that partners will receive in liquidation of the partnership is the same under the cash priority program and scheduled of safe payment.Statement 2: General partners will always have to prioritize their personal liabilities over the liabilities of the partnership even though the assets of the partnership are no longer enough to pay all the creditors of the same partnership. Only statement 2 is true Only statement 1 is true Both statements are true Both statements are false 8. Statement 1: The minimum number of partners to form a partnership is only two.Statement 2: By a contract of partnership, two or more persons bind themselves to contribute money, property, and industry to common fund with the intention of dividing the profits among themselves. Both statements are true Only statement 1 is trueBoth statements are false Only statement 2 is true 9. Statement 1: If a partner made a drawing, the journal entry will have a debit to that partner’s capital account.Statement 2: If a partner made a withdrawal, the journal entry will have a debit to that partner’s capital account. Both statements are true Only statement 1 is true Both statements are false Only statement 2 is true 10. Statement 1: Liabilities are ignored in the computation of initial contributions of the partners if the same are not assumed by the partnership.Statement 2: Liabilities are netted against the measurement of assets contribution if the same are assumed by the partners. Both statements are true Only statement 1 is true Only statement 2 is true Both statements are false Accounting Business Financial Accounting Share QuestionEmailCopy link Comments (0)
