In partnership liquidation, which of the following statements is correct? * O Only cash can be distributed to the partners upon liquidation of the partnership O Any gains or losses on the sale of non-cash assetsmust be divided equally among partners O Cash should be distributed to partners on the basis of the partner's profit or loss ratio O The general partners shall absorb the capital deficiency that cannot be made good by an insolvent partner
In partnership liquidation, which of the following statements is correct? * O Only cash can be distributed to the partners upon liquidation of the partnership O Any gains or losses on the sale of non-cash assetsmust be divided equally among partners O Cash should be distributed to partners on the basis of the partner's profit or loss ratio O The general partners shall absorb the capital deficiency that cannot be made good by an insolvent partner
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
question 15
choose the correct answer from the choices
Transcribed Image Text:In partnership liquidation, which of the following statements is correct? *
O Only cash can be distributed to the partners upon liquidation of the partnership
O Any gains or losses on the sale of non-cash assetsmust be divided equally among partners
O Cash should be distributed to partners on the basis of the partner's profit or loss ratio
O The general partners shall absorb the capital deficiency that cannot be made good by an insolvent partner
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education