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

question 35

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) creditors other than partners.
• D) partners for capital.

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Definitions:

Overhead Budget

A financial plan estimating the expected indirect costs required to support operational activities within a certain period.

Variable Overhead Costs

Costs that fluctuate with production volume, such as utilities or raw materials.

Service Company

A business that provides non-physical goods or services to customers.

Planning Budget

A budget created for a particular level of activity, used as a tool for decision making and performance evaluation.