When a Partnership Is Liquidated,which of the Following Is Not

question 55

Multiple Choice

When a partnership is liquidated,which of the following is not true?

• A)Noncash assets are converted to cash.
• B)Any gain or loss on liquidation is allocated to the partners' capital accounts using the income and loss sharing ratio.
• C)Liabilities are paid or settled.
• D)Any remaining cash is distributed to the partners based on their capital balances.
• E)Any remaining cash is distributed to partners in accordance with the income- and loss-sharing ratio.

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Definitions:

Variance

A measure of how much values in a dataset differ from the mean, indicating the distribution's spread.

Standard Deviation

The measure of the dispersion of a set of values relative to its mean, indicating how spread out the values are.

Standard Normal Curve

A bell-shaped curve that is symmetric about the mean, representing the distribution of a standard normal variable with a mean of zero and a variance of one.

Mean

The arithmetic average of a set of numbers, calculated by dividing the sum of all values by the count of the values.