Answered: Claims against partners personal assets…

Claims against partners personal assets by creditors if the partnership can't pay its debts refers to? a liquidation differs from a dissolution in that in a liquidation?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 12Q: When a partnership liquidates, do partners get paid first or do creditors get paid first?

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Claims against partners personal assets by creditors if the partnership can't pay its debts refers to? a liquidation differs from a dissolution in that in a liquidation?

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In the liquidation of a partnership, why might a partner be concerned that a fellow partner has a deficit net capital balance, and how might such a deficit be eliminated?
According to the Uniform Partnership Act, what events should occur if a partner incurs a negative capital balance during the liquidation process?
In the liquidation of a partnership, a loan payable to a partner: a) May be offset against that partners’ capital account balance before liquidation commences. b) Will not advance the time of payment to that partner during the liquidation. c) Has the same priority as amounts payable to outside creditors of the partnership. d) Must be closed to that partners’ drawing account.
s Claims against partners' personal assets by creditors if the partnership can't pay its debts refers to a. liquidation. b. dissolution. c. mutual agency. d. unlimited liability. 6 A liquidation differs from a dissolution in that in a liquidation a. assets may be revalued. b. the business will not continue. c. there may be an adjustment of partners' capital accounts. d. gains and losses are distributed according to the partnership agreement. 7. A partner's loss absorption balance is calculated by a. dividing the partner's capital balance by his percentage interest in capital. b. multiplying distributable assets by the partner's profit sharing percentage. C. dividing the partner's total interests by his profit and loss sharing percentage. d. multiplying the partner's total interests by his profit and loss sharing percentage. 8. In accounting for liquidation of a partnership, cash payments to partners after all outside creditors' claims have been satisfied, but before final cash…
In a partnership liquidation, if a partner has a debit capital balance in his or her capital account, he or she is responsible for contributing personal assets sufficient to eliminate the deficit. Group of answer choices True False
In accounting for a withdrawal by payment from partnership assets, which statement is FALSE? O The withdrawing partner may be paid using non-cash assets. O Net assets will decrease O Total capital will decrease. O Asset revaluations should bx recorded.
When a partnership liquidates, do partners get paid first or do creditors get paid first?
An entry is not required in the liquidation of a partnership to recor the * payment of cash to creditors. O distribution of cash to the partners. sale of noncash assets. allocation of a capital deficiency to partners with credit balances when the deficient partner is expected to pay the deficiency.
1. Describe how loans receivable from partners and loans payable to partners are treated in liquidation and why is that necessary? 2.
A partner's withdrawal of assets from a LLP that is considered a permanent reduction in that partner's equity is debited to the partner's: Select one :- a. Retained Earnings account b. Loan Receivable account c. Drawing account d. Capital account
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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.