Which of the Following Statements About the Liquidation of a Partnership

question 12

Multiple Choice

Which of the following statements about the liquidation of a partnership is TRUE?

• A)The final cash distribution is always based on equal shares.
• B)The final cash distribution is based on the partners' capital account balances.
• C)Gains and losses from the disposal of assets are always distributed to the partner's capital accounts based on their respective percentage of total capital.
• D)The final cash distribution is always based on the profit sharing formula specified in the partnership agreement.

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Definitions:

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