Statement I: In lumpsum liquidation, the remaining cash available after realization and payment of liquidation expenses, will be equal to the total interest of the partners. Statement II: In installment liquidation, the partner who has the highest absorption capacity shall be prioritized in the payment of interest. Group of answer choices Both statements are false Both statements are true S1 is true; S2 is false S1 is false; S2 is true
Statement I: In lumpsum liquidation, the remaining cash available after realization and payment of liquidation expenses, will be equal to the total interest of the partners. Statement II: In installment liquidation, the partner who has the highest absorption capacity shall be prioritized in the payment of interest. Group of answer choices Both statements are false Both statements are true S1 is true; S2 is false S1 is false; S2 is true
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Statement I: In lumpsum liquidation, the remaining cash available after realization and payment of liquidation expenses, will be equal to the total interest of the partners.
Statement II: In installment liquidation, the partner who has the highest absorption capacity shall be prioritized in the payment of interest.
Statement II: In installment liquidation, the partner who has the highest absorption capacity shall be prioritized in the payment of interest.
Group of answer choices
Both statements are false
Both statements are true
S1 is true; S2 is false
S1 is false; S2 is true
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