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Deficit Balance
A financial situation where liabilities exceed assets or expenses exceed income, leading to a negative balance.
Capital Account
The capital account in financial accounting represents where adjustments in assets and liabilities are recorded, correlating to transactions involving investments or loans.
Liquidating Partnership
A process where a partnership ends its operations, sells off its assets, and pays its liabilities, distributing the remaining assets to the partners based on their share in the partnership.
Insolvent
A financial state where an entity cannot meet its financial obligations as they come due.
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