In a Partnership Liquidation, If a Partner Has a Debit

question 48

True/False

In a partnership liquidation, if a partner has a debit capital balance in his or her capital account, he or she is responsible for contributing personal assets sufficient to eliminate the deficit.

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Definitions:

Probability

A measure of how likely an event is to occur, ranging from 0 (impossible event) to 1 (certain event).

Union

An organized association of workers formed to protect and further their rights and interests; or, in mathematics, the set containing all the distinct elements of some given sets.

Dependent Events

Events where the outcome or occurrence of the first affects the outcome or occurrence of the second.

Independent Events

Two or more events where the occurrence of one event does not affect the probability of the other(s).