Matching (1.) the Statement of Liquidation

question 31

Short Answer

Matching
(1.) The statement of liquidation
(2.) Deficit capital account balances
(3.) Safe capital account balances
(4.) Predistribution plan
(A.) A report produced periodically by the accountant to disclose transactions that have occurred during liquidation, the remaining assets and liabilities, and updated capital account balances.
(B) At the start of a liquidation, this document provides guidance for all payments to be made to the partners throughout the liquidation.
(C.) One or more partners may have a negative capital account balance often as a result of losses incurred in disposing of assets.
(D.) A provision for an equitable distribution of assets during liquidation.

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Definitions:

Raise Capital

The process by which a company or individual secures money from investors or lenders for business activities or expansion.

TSX

The Toronto Stock Exchange, which is the largest stock exchange in Canada, trading Canadian securities.

Dealer Market

A financial market mechanism in which buyers and sellers execute transactions through dealers who buy and sell for their own accounts.