Which of the Following Does NOT Need to Occur for a Partnership

question 23

Multiple Choice

Which of the following does NOT need to occur for a partnership allocation to have substantial economic effect?

• A)An adjustment must be made in the partner's capital account
• B)Liquidation proceeds must be distributed in accordance with capital accounts
• C)Profits and losses must be allocated to different partners in proportion to their equity contribution
• D)Following the distribution of sale proceeds,partners must be liable to the partnership to restore any deficit in their capital account

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Definitions:

Theory Perseverance Effect

The phenomenon where beliefs persist even after the evidence supporting them has been discredited or debunked.

Thinking About Thinking

The process of reflecting on one's own thought patterns, beliefs, and cognitive processes; also known as metacognition.

Correspondence Bias

The tendency to draw inferences about a person's unique and enduring dispositions from behaviors that can be entirely explained by the situations in which they occur.

External Attributions

The process of assigning the cause of behavior to situational factors outside the individual, rather than internal characteristics.