In the Liquidation Process If a Capital Account Shows a Deficiency

question 34

Multiple Choice

In the liquidation process if a capital account shows a deficiency

• A) the partner with a deficiency has an obligation to the partnership for the amount of the deficiency.
• B) it may be written off to a "Loss" account.
• C) it is disregarded until after the partnership books are closed.
• D) it can be written off to a "Gain" account.

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Definitions:

Turning Point

A moment or event that marks a significant change or shift in direction, leading to new developments or transformations in various contexts, such as historical events, personal lives, or industries.

1963

A year marked by significant events such as the assassination of U.S. President John F. Kennedy, the March on Washington for Jobs and Freedom, and the height of the Cold War.

Watergate Scandal

A political scandal in the early1970s involving a break-in at the Democratic National Committee headquarters and the Nixon administration's attempted cover-up, leading to President Nixon's resignation.

Richard Nixon

The 37th President of the United States, serving from 1969 to 1974, known for his role in the Watergate scandal.