Answer if TRUE or FALSE. If the statement is FALSE provide at least a brief explanation why it's wrong. 1. Liquidation expenses which are incurred in the realization of non-cash assets affect cash but not partners' capital. 2. A partnership is generally liquidated when its term is terminated. 3. The outside creditors of the partnership have better claims over the personal assets of the partner. 4. Gains and losses arising from the sale of the assets in a partnership liquidation are always divided equally among partners.
Answer if TRUE or FALSE. If the statement is FALSE provide at least a brief explanation why it's wrong. 1. Liquidation expenses which are incurred in the realization of non-cash assets affect cash but not partners' capital. 2. A partnership is generally liquidated when its term is terminated. 3. The outside creditors of the partnership have better claims over the personal assets of the partner. 4. Gains and losses arising from the sale of the assets in a partnership liquidation are always divided equally among partners.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Answer if TRUE or FALSE. If the statement is FALSE provide at least a brief explanation why it's wrong.
1. Liquidation expenses which are incurred in the realization of non-cash assets affect cash but not partners' capital.
2. A partnership is generally liquidated when its term is terminated.
3. The outside creditors of the partnership have better claims over the personal assets of the partner.
4. Gains and losses arising from the sale of the assets in a partnership liquidation are always divided equally among partners.
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