Before Distributing Any Remaining Cash to Partners in a Partnership

question 196

Multiple Choice

Before distributing any remaining cash to partners in a partnership liquidation it is necessary to do each of the following except

• A) sell noncash assets for cash.
• B) recognize a gain or loss on realization.
• C) allocate the gain or loss to the partners based on their capital balances.
• D) pay partnership liabilities in cash.

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Definitions:

Existing Copier

A copier machine that is currently owned or in use within an organization.

Evaluation

The process of examining and judging something's value, quality, or importance.

Net Working Capital

Net Working Capital is a measure of a company's short-term financial health, calculated as current assets minus current liabilities.

Present Value

The contemporary valuation of future financial inflows or a lump sum, adjusted for a specific rate of return.