Which of the Following Is Not an Assumption That Is

question 15

Multiple Choice

Which of the following is not an assumption that is made when determining safe payments during a partnership liquidation?

• A)Liquidation expenses may be incurred.
• B)Partners with deficit balances will not be able to make them up.
• C)The partner with the highest capital balance will be the first to receive a safe payment.
• D)Unsold noncash assets are assumed to be worthless.

---

Definitions:

Eurodollars

US dollars deposited in banks outside the United States, often used for international transactions and investing.

Dollar-Denominated Deposits

Bank deposits made in U.S. dollars rather than the local currency, often used by investors to avoid foreign exchange rate risk.

Foreign Bank

A bank based in a country other than the country it provides services in, often subject to both domestic and international banking regulations.

Value-Weighted Index

An index in which the weight of each constituent is proportional to its market value, emphasizing larger companies.