The Last Step in a Partnership Liquidation Is to Apply

question 19

True/False

The last step in a partnership liquidation is to apply cash to creditor claims.

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Definitions:

Crossfooting

A method used in accounting to check the arithmetic accuracy of figures by adding columns of numbers both vertically and horizontally and comparing the totals.

Equality

In accounting, the concept that the sum of debits must equal the sum of credits in a transaction.

Subsidiary Ledger

A detailed ledger that contains all the transaction details of a specific account, which is summarized in the general ledger.

Accounts Payable

Liabilities or money owed by a company to its creditors or suppliers for goods and services received but not yet paid for.