Which of the Following Statements Is True Concerning the Distribution

question 14

Multiple Choice

Which of the following statements is true concerning the distribution of safe payments?

• A) The distribution of safe payments assumes that any capital deficit balances will prove to be a total loss to the partnership.
• B) Safe payments are equal to the recorded capital account balances of those partners with capital account balances in excess of $0.
• C) The distribution of safe payments may only be made after all liabilities have been paid.
• D) In computing safe payments, partners with positive capital account balances are assumed to absorb an equal share of any deficit balance(s).
• E) There are no safe payments until the liquidation is complete.

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