In a Partnership Liquidation Situation Where One or More of the Partners

question 149

Multiple Choice

In a partnership liquidation situation where one or more of the partners' capital accounts have a debit balance, this is referred to as

• A) a capital deficiency.
• B) no capital deficiency.
• C) a gain on realization.
• D) a loss on realization.

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Definitions:

P(B)

The probability of occurrence of event B in a statistical experiment.

P(A And B)

The likelihood that events A and B will happen simultaneously.

Independent Events

Two or more events are independent if the occurrence of one does not affect the probability of the other(s).

P(A)

The probability of event A occurring in a given statistical experiment.