Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:
Expenses on dissolution of partnership firm is called:
Options:
Dissolution Expenses
Indirect Expenses
Direct Expenses
Realisation Expenses
Correct Answer:
Realisation Expenses
Explanation:
Realization expenses are the costs incurred when winding up or liquidating a business or investment. These expenses are associated with the process of converting assets into cash, paying off liabilities, and distributing any remaining funds to stakeholders or shareholders. Realization expenses typically include various costs and fees related to the liquidation process.