Which One of the Following Statements Is Correct

question 36

Multiple Choice

Which one of the following statements is correct?

• A) If a partner of a liquidating partnership is unable to pay a capital account deficit, the deficit is absorbed by the other partners in the profit and loss ratio of those partners.
• B) Gains and losses from the sale of noncash assets are divided in the ratio of the partners' capital account balances if there is no income-sharing plan in the partnership contract.
• C) A loan receivable from a partner is added to the partner's capital account balance in the preparation of a cash distribution plan.
• D) Partners may not receive any cash before partnership creditors receive cash when liquidating a partnership.
• E) All cash payments to partners are made using their profit and loss ratio when liquidating the partnership.

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Definitions:

NADPH

Nicotinamide adenine dinucleotide phosphate, a coenzyme involved in anabolic reactions, such as lipid and nucleic acid synthesis, and the antioxidant defense system.

Electrons Needed

Refers to the requirement of electrons in various chemical reactions and processes, such as those in cellular respiration and photosynthesis.

NADPH Formed

The production of Nicotinamide Adenine Dinucleotide Phosphate, a critical cofactor in anabolic reactions, during cellular metabolic processes.

Thylakoid Lumen

The inner space of the thylakoids, where the light-dependent reactions of photosynthesis occur.