Under the UPA, Which of the Following Liabilities of a Partnership

question 5

Multiple Choice

Under the UPA, which of the following liabilities of a partnership has the highest priority for payment out of partnership assets? Amounts owing to:

• A) partners for profits.
• B) partners for loans or advances.
• C) partners for capital.
• D) creditors other than partners.

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Definitions:

Revenue Journal

A revenue journal is an accounting ledger that records sales transactions where a business earns revenue, typically used in a manual accounting system.

Segment Data

Financial information that is broken down into sub-parts of a company, such as departments or product lines, to analyze performance and make strategic decisions.

GAAP

Generally Accepted Accounting Principles, a set of rules and standards for financial accounting and reporting in the U.S.

Horizontal Analysis

A financial analysis technique that compares historical financial data over a series of periods to identify trends and growth patterns.