The Partners' Profit and Loss Sharing Ratio Is 2:3:5, Respectively

question 51

Multiple Choice

The partners' profit and loss sharing ratio is 2:3:5, respectively.
-If the D, E, and F Partnership is liquidated by selling the equipment for $45,000 and creditors are paid in full, what is the amount of cash that can be safely distributed to each partner?

• A) D, $24,000; E, $16,000; F, $0
• B) D, $14,000; E, $21,000; F, $5,000
• C) D, $20,000; E, $25,000; F, $5,000
• D) D, $30,000; E, $25,000; F, $15,000

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Definitions:

Standard Error of Measurement (SEM)

The margin of error in an individual's score, representing the variability in scores if the test were administered multiple times.

Test-Retest Reliability

A measure of consistency where the same test administered to the same group of individuals at two different points in time produces similar results.

Normal Distribution

A bell-shaped frequency distribution where most occurrences take place near the mean and fewer occur as the distance from the mean increases.

Criterion-Referenced Testing

involves evaluating and scoring a test taker's performance based on a specific set of criteria or standards, rather than comparing it to the performance of a peer group.