Which of the Following Is True About Charging a Partner's

question 42

Multiple Choice

Which of the following is true about charging a partner's capital account during distribution?

• A)Losses from sale of partnership assets during winding up are not charged against a partner's capital account.
• B)Partners are given the gross amount existing in their capital accounts.
• C)On account of negative balance in a partner's account,other partners are under no obligation to contribute to set off the shortage.
• D)If partnership creditors cannot be paid from the partnership assets,the creditors may proceed against the partners' capital accounts.

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Definitions:

Memory Capacity

The amount of data or information that can be stored in a device's memory system.

KB

Kilobyte, a unit of digital information storage equal to 1,024 bytes.

MB

Megabyte, a unit of digital information storage or transmission which comprises approximately 1 million bytes.

GB

Gigabyte, a unit of digital information storage equal to 1,024 megabytes or roughly 1 billion bytes.