Which of the Following Is True of Capital Deficiency in the Liquidation

question 108

Multiple Choice

Which of the following is true of capital deficiency in the liquidation of a partnership?

• A)It refers to a partnership's claim against a partner.
• B)It occurs when a partner's capital account has a credit balance.
• C)It refers to the partnership's inability to find capital.
• D)It occurs when a partner cannot find positive NPV projects.

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Definitions:

Anecdote

A short, amusing or interesting story about a real incident or person, often used to illustrate a point.

Psychic

Pertaining to phenomena or abilities claimed to be beyond the natural physical laws, such as extrasensory perception or telekinesis.

Poison

A substance that is capable of causing illness or death to organisms, typically by chemical reaction or other activity on the molecular scale, when an adequate quantity is absorbed.

Anecdotes

Short, often amusing or interesting stories about a real incident or person, typically used to illustrate or support a point.