This set of multiple choice questions (MCQs) focuses on the retirement and death of a partner. These MCQs will help you prepare for your exams, interviews, and other tests. Just click the “Start quiz” button to begin the test.
If you find it difficult to answer any of these questions, you would benefit from re-reading our article on the retirement and death of a partner.
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Retirement and death of a partner mcqs
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Question 1 of 8
1. Question
A partnership may come to an end due to:
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Your answer is incorrect. The correct answer is “Both of the above” (option 3).
Question 2 of 8
2. Question
A revaluation account is used to determine gains or losses at the time of:
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Your answer is incorrect. The correct answer is “All of above” (option 4).
Question 3 of 8
3. Question
Partners’ equity is affected by:
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Your answer is incorrect. The correct answer is “All of the above” (option 4).
Question 4 of 8
4. Question
The accounting procedure applied after the retirement of a partner involves:
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Your answer is incorrect. The correct answer is “Revaluation of assets and liabilities” (option 1).
Question 5 of 8
5. Question
After a partner’s retirement, if the remaining partners want to continue the business, a new partnership agreement is:
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Your answer is incorrect. The correct answer is “Necessary” (option 1).
Question 6 of 8
6. Question
An account operated to ascertain the loss or gain at the death of a partner is called:
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Your answer is incorrect. The correct answer is “Revaluation account” (option 2).
Question 7 of 8
7. Question
The amount due to an outgoing partner is shown on the balance sheet as their:
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Your answer is incorrect. The correct answer is “Loan” (option 4).
Question 8 of 8
8. Question
The loss or gain on account of revaluation at the time of a partner’s retirement is shared by:
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Your answer is incorrect. The correct answer is “All partners” (option 3).
What are the tax implications when a partner dies?
The death of a partner can have various tax implications. For example, if the deceased partner was the sole owner of a business, the business would need to be sold or transferred to another party. If the deceased partner was not the sole owner of a business but had an ownership interest, the business would need to be valued and the proceeds distributed among the remaining partners. In addition, the deceased partner’s estate may be subject to estate taxes.
What are the retirement plan implications when a partner dies?
When a partner dies, the surviving partner may be able to receive social security benefits based on the deceased partner’s work record. In order to receive these benefits, the surviving partner must file a claim with the Social Security Administration. The benefits may be equal to half of the deceased partner’s benefit, or they may be based on the surviving partner’s work record, whichever is greater.
What are the retirement plan implications when a partner dies?
What are the retirement plan implications when a partner dies?
What are the insurance implications when a partner dies?
When a partner dies, the surviving partner may be able to collect life insurance benefits from the deceased partner’s policy. In order to collect these benefits, the surviving partner must file a claim with the insurance company. The benefits will vary depending on the terms of the policy.
What are the inheritance implications when a partner dies?
When a partner dies, the surviving partner may be able to inherit the deceased partner’s estate. This will depend on the terms of the will or trust, and state law. The surviving partner may be entitled to all or part of the deceased partner’s assets.
About the Author True Tamplin, BSc, CEPF®
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.
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Your answer is incorrect. The correct answer is “Both of the above” (option 3).