In accounting for the lump-sum liquidation of a partnership, cash payments to partners after all non-partner creditors' claims have been satisfied, but before the final cash distribution should be according to a. the final balances in partner capital accounts. b. the partners' relative share of the gain or loss on liquidation. c. the partners' relative profit and loss sharing ratio. d. safe payment computations.
In accounting for the lump-sum liquidation of a partnership, cash payments to partners after all non-partner creditors' claims have been satisfied, but before the final cash distribution should be according to a. the final balances in partner capital accounts. b. the partners' relative share of the gain or loss on liquidation. c. the partners' relative profit and loss sharing ratio. d. safe payment computations.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In accounting for the lump-sum liquidation of a partnership, cash payments to partners after all non-partner creditors' claims have been satisfied, but before the final cash distribution should be according to
a. the final balances in partner capital accounts.
b. the partners' relative share of the gain or loss on liquidation.
c. the partners' relative
d. safe payment computations.
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