In an LLP That Is Continuing Business After Dissociation

question 40

Multiple Choice

In an LLP that is continuing business after dissociation:

• A)a dissociated partner has high risk of continuing liability for contracts.
• B)a dissociated partner has less risk of continuing liability for torts occurring before or after the partner leaves the LLP.
• C)the partner's liability is limited beyond the LLP's assets.
• D)the buyout payment made to a dissociated LLP partner will impair the ability of the LLP to pay its creditors.

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Definitions:

Conversion Costs

Costs incurred to convert raw materials into finished products, including labor and overhead expenses.

Process Costing

A costing method used for homogeneous products that are produced in a continuous process, allocating costs to units of product based on the processes they undergo.

Weighted-Average Method

This method computes the cost of goods sold and the value of ending inventory by taking the mean cost of every unit available for sale throughout the period.

Cost Reconciliation

The process of analyzing and adjusting differences between actual costs and standard or budgeted costs.