Question 1

Select the one term that best fits each definition.
-The process of paying a partnership's liabilities and distributing remaining assets to the partners.
A) bill of lading
B) distribution of net income statement
C) exports
D) imports
E) letter of credit
F) liquidation of a partnership
G) partnership agreement
H) realization
I) time draft
J) trade acceptance

Accepted Answer

Liquidation of a partnership involves paying off the partnership's liabilities and distributing the remaining assets to the partners. This process is undertaken when a partnership is ending or undergoing significant restructuring.

Question 2

Select the one term that best fits each definition.
-A form signed by a buyer at the time of a sale of merchandise in which the buyer promises to pay the seller a specified sum of money, usually at a stated time in the future.
A) bill of lading
B) distribution of net income statement
C) exports
D) imports
E) letter of credit
F) liquidation of a partnership
G) partnership agreement
H) realization
I) time draft
J) trade acceptance

Accepted Answer

A trade acceptance is a written agreement or promise made by a buyer to pay the seller a specified sum of money at a specified future date, typically used in the sale of merchandise.

Question 3

Select the one term that best fits each definition.
-Cash received from the sale of assets during liquidation of a partnership.
A) bill of lading
B) distribution of net income statement
C) exports
D) imports
E) letter of credit
F) liquidation of a partnership
G) partnership agreement
H) realization
I) time draft
J) trade acceptance

Accepted Answer

Realization refers to the process of converting assets into cash or cash equivalents, which is what occurs during the liquidation of a partnership when assets are sold.

Question 4

Select the one term that best fits each definition.
-A partnership financial statement showing net income or loss distribution to partners.
A) bill of lading
B) distribution of net income statement
C) exports
D) imports
E) letter of credit
F) liquidation of a partnership
G) partnership agreement
H) realization
I) time draft
J) trade acceptance

Accepted Answer

The distribution of net income statement for a partnership details how the net income or loss of the partnership is allocated among the partners according to the terms outlined in the partnership agreement.

Question 5

Select the one term that best fits each definition.
-A draft that is payable at a fixed or determinable future time after it is accepted.
A) bill of lading
B) distribution of net income statement
C) exports
D) imports
E) letter of credit
F) liquidation of a partnership
G) partnership agreement
H) realization
I) time draft
J) trade acceptance

Accepted Answer

A time draft is a type of draft that is payable at a fixed or determinable future time after it is accepted, fitting the definition provided.

Question 6

Select the one term that best fits each definition.
-A written agreement setting forth the conditions under which a partnership is to operate.
A) bill of lading
B) distribution of net income statement
C) exports
D) imports
E) letter of credit
F) liquidation of a partnership
G) partnership agreement
H) realization
I) time draft
J) trade acceptance

Accepted Answer

A partnership agreement is a document that outlines the terms and conditions under which a partnership will operate, including the responsibilities of the partners, the distribution of profits and losses, and the procedures for making decisions and resolving disputes.

Question 7

Select the one term that best fits each definition.
-A letter issued by a bank guaranteeing that a named individual or business will be paid a specified amount, provided stated conditions are met.
A) bill of lading
B) distribution of net income statement
C) exports
D) imports
E) letter of credit
F) liquidation of a partnership
G) partnership agreement
H) realization
I) time draft
J) trade acceptance

Accepted Answer

A letter of credit is a financial document issued by a bank that guarantees a buyer's payment to a seller will be received on time and for the correct amount. It is used in international trade to ensure that payment will be received where the buyer and seller may not know each other personally and are operating in different countries.

Question 8

Select the one term that best fits each definition.
-Goods or services shipped into the buyer's home country from another country.
A) bill of lading
B) distribution of net income statement
C) exports
D) imports
E) letter of credit
F) liquidation of a partnership
G) partnership agreement
H) realization
I) time draft
J) trade acceptance

Accepted Answer

Imports are goods or services brought into a country from abroad for sale.

Question 9

Select the one term that best fits each definition.
-Goods or services shipped out of a seller's home country to another country.
A) bill of lading
B) distribution of net income statement
C) exports
D) imports
E) letter of credit
F) liquidation of a partnership
G) partnership agreement
H) realization
I) time draft
J) trade acceptance

Accepted Answer

Exports are goods or services sent from one country to another for sale or trade, fitting the definition provided.

Question 10

Select the one term that best fits each definition.
-A receipt signed by the authorized agent of a transportation company for merchandise received that also serves as a contract for the delivery of the merchandise.
A) bill of lading
B) distribution of net income statement
C) exports
D) imports
E) letter of credit
F) liquidation of a partnership
G) partnership agreement
H) realization
I) time draft
J) trade acceptance

Accepted Answer

A bill of lading is a legal document issued by a carrier to a shipper, detailing the type, quantity, and destination of the goods being carried. It serves as a receipt of shipment when the goods are delivered to the predetermined destination and includes terms for transporting the shipment to its final destination.

Quiz 27: Additional Accounting Procedures

Select the one term that best fits each definition. -The process of paying a partnership's liabilities and distributing remaining assets to the partners.

Select the one term that best fits each definition. -A form signed by a buyer at the time of a sale of merchandise in which the buyer promises to pay the seller a specified sum of money, usually at a stated time in the future.

Select the one term that best fits each definition. -Cash received from the sale of assets during liquidation of a partnership.

Select the one term that best fits each definition. -A partnership financial statement showing net income or loss distribution to partners.

Select the one term that best fits each definition. -A draft that is payable at a fixed or determinable future time after it is accepted.

Select the one term that best fits each definition. -A written agreement setting forth the conditions under which a partnership is to operate.

Select the one term that best fits each definition. -A letter issued by a bank guaranteeing that a named individual or business will be paid a specified amount, provided stated conditions are met.

Select the one term that best fits each definition. -Goods or services shipped into the buyer's home country from another country.

Select the one term that best fits each definition. -Goods or services shipped out of a seller's home country to another country.

Select the one term that best fits each definition. -A receipt signed by the authorized agent of a transportation company for merchandise received that also serves as a contract for the delivery of the merchandise.