Frequently, when there is a change of partners in a partnership, assets are revalued because . . .?
Select ONE answer:
- this is a requirement of the Partnership Act, 1890.
- it helps prevent financial injustice to some partners.
- inflation affects all values.
- 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
- Not correct
- 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.
- Not correct
- Not correct
This work is licensed under a Creative Commons Attribution 4.0 International License.