If Conditions Produce a Debit Balance in a Partner's Capital

question 13

Multiple Choice

If conditions produce a debit balance in a partner's capital account when liquidation losses are allocated,then

• A)the partner receives further allocations of liquidation losses,but not gains.
• B)the partner receives further allocations of liquidation gains,but not losses.
• C)the partner is no longer obligated to partnership creditors.
• D)the partner has an obligation of personal net assets to the other partners.

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Definitions:

Iliac Crest

The upper margin of the iliac bones, which forms the prominent part of the pelvic hip bone.

Lower Lumbar

Referring to the lower part of the lumbar region of the back, which includes the lower vertebrae of the spine.

Quadratus Lumborum

A muscle in the lower back that helps with the movement of the spine as well as stabilizes the pelvis.

Transversus Abdominis

A muscle layer of the anterior and lateral abdominal wall which is deep to (layered below) the internal oblique muscle.