In a partnership account, conversation of non-cash assets into cash is referred to as?
FINANCIAL
JAMB 2009
In a partnership account, conversation of non-cash assets into cash is referred to as?
- A. realization
- B. disposal
- C. dissolution
- D. revaluation
Correct Answer: A. realization
Explanation
Realization account refers to an account opened by the firm when it goes to dissolution to record the profit made from the sale of assets and loss suffered on the settlement of liabilities. When non-assets are converted to cash its called realization
Post an Explanation Or Report an Error
If you see any wrong question or answer, please leave a comment below and we'll take a look. If you doubt why the selected answer is correct or need additional more details? Please drop a comment or Contact us directly. Your email address will not be published. Required fields are marked *