In the Computation of a Partner's Loss Absorption Power (LAP),which

question 14

Multiple Choice

In the computation of a partner's Loss Absorption Power (LAP) ,which of the following statements is incorrect?
I.The computation of LAPs for all partners allows cash to be distributed before all partnership assets have been sold and all creditors have been paid.
II.The computation of LAPs for all partners indicates the relative strength of each partner's net capital position so that available cash is distributed in respective loss-sharing ratios.

• A) I
• B) II
• C) Both I and II
• D) Neither I nor II

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Definitions:

Frequency

The rate at which something occurs over a particular period or in a given sample.

Functional Analysis

A behavioral technique that identifies the antecedents and consequences of behavior to determine the reason or function behind it, commonly used in behavioral psychology.

Nomothetic Approach

An approach focusing on studying what we share with others (laws or generalizations applicable to all members of a population).

Behavioral Diagnosis

A process in psychology used to determine the specific behavior patterns and mental processes underlying an individual's difficulties.