An Entry Is Not Required in the Liquidation of a Partnership

question 200

Multiple Choice

An entry is not required in the liquidation of a partnership to record the

• A) payment of cash to creditors.
• B) distribution of cash to the partners.
• C) sale of noncash assets.
• D) allocation of a capital deficiency to partners with credit balances when the deficient partner is expected to pay the deficiency.

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Definitions:

Incompetence

The lack of ability, qualification, or capacity to perform a specified job or task effectively.

Personal Distress

Negative feelings and emotions that an individual experiences as a result of witnessing others in distress.

Dimensional Approach

A method of classifying characteristics or disorders on a spectrum rather than as categorical, binary states.

Categorical Approach

A method of classification based on discrete and distinct categories or groups.