Which of the Following Statements Is False Concerning Partnership Liquidating

question 76

Multiple Choice

Which of the following statements is False concerning partnership liquidating distributions?

• A) A partner who receives a liquidating distribution can retain an interest in the partnership.
• B) A partnership agreement may restrict the sale of a partnership making a liquidating distribution the only way a partner can close out his interest in the partnership.
• C) Liquidating a single partner's interest is similar in concept to a corporate redemption of a shareholder's interest.
• D) None of these statements is False

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Definitions:

Plantwide Predetermined Rate

A single overhead absorption rate calculated for an entire manufacturing facility to allocate overhead costs to products.

Markup

refers to the amount added to the cost price of goods to cover overhead and profit.

Machine-Hours

A measure of production volume based on the total hours machines are run in the manufacturing process, often used to allocate overhead costs.

Departmental Predetermined Rates

The estimated overhead rates calculated for specific departments within a company to allocate costs appropriately.