Accounting JAMB

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:

Option 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

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