Which of the Following Statements Is Correct Regarding a Partner's

question 10

Multiple Choice

Which of the following statements is correct regarding a partner's debit capital balances in a liquidation?

• A)The partner should make contributions to reduce the debit balance to whatever extent possible.
• B)If contributions are not possible, the other partners with credit capital balances will be allocated a portion of the debit balance based on their proportionate profit-and-loss-sharing percentages.
• C)Partners who absorb another's debit capital balance have a legal claim against the deficient partner.
• D)All of these statements are correct.

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