Upon Dissolution,unlike a General Partner,a Limited Partner Can Get His

question 16

True/False

Upon dissolution,unlike a general partner,a limited partner can get his capital back before general creditors are paid.

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Definitions:

Operating Lease

A leasing agreement allowing the use of an asset without ownership, typically with shorter terms than the asset's life, and where the lessor retains the risks and benefits of ownership.

Capital Lease

A lease classified as a purchase by the lessee, where the asset is accounted for on the lessee’s balance sheet as an asset.

Effective-Interest Method

A method of calculating the amortized cost of a bond and the interest expense over the life of the bond by applying a constant interest rate to the carrying value of the bond.

GAAP

Stands for Generally Accepted Accounting Principles, which are the standard framework of guidelines for financial accounting in a particular jurisdiction.