Which of the Following Is True of a Liquidation of a Partnership

question 98

Multiple Choice

Which of the following is true of a liquidation of a partnership?

• A)It allocates the gain or loss on sale of assets to the partners' capital accounts based on the profit-and-loss-sharing ratio.
• B)The remaining cash after paying all liabilities are paid to the partners based on their profit-and-loss-sharing agreement.
• C)Before a business is liquidated,its books should not be adjusted or closed.
• D)It involves the selling of short-term liquid assets and does not involve the sale of fixed assets.

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Definitions:

Sagittal Plane

A body plane that separates the body into left and right sections.

Anterior Antebrachial Region

The front area of the forearm, which stretches from the elbow to the wrist.

Femoral Region

The area of the lower limb that includes the thigh, specifically referring to structures related to the femur bone.

Hypochondriac Region

One of the regions of the abdomen, located on either side just below the ribs.