Accounting Multiple Choice Question – 21 April 2020

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Frequently, when there is a change of partners in a partnership, assets are revalued because . . .?

Select ONE answer:

  1. this is a requirement of the Partnership Act, 1890.
  2. it helps prevent financial injustice to some partners.
  3. inflation affects all values.
  4. None of the above.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

  1. Not correct
  2. Correct – If assets were not revalued, a partner leaving the firm may not receive his / her full entitlements or a partner joining the firm may not be asked to bring in enough to pay for his / her share.
  3. Not correct
  4. Not correct

 

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