Which of the Following Is TRUE of a Liquidation of a Partnership

question 84

Multiple Choice

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

• A) It allocates the gain or loss on sale of assets to the partners' capital accounts based on the profit-and-loss-sharing ratio.
• B) The remaining cash after paying all liabilities are paid to the partners based on their profit-and-loss-sharing agreement.
• C) Before a business is liquidated, its books should not be adjusted or closed.
• D) It involves the selling of short-term liquid assets and does not involve the sale of fixed assets.

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Definitions:

Unjustified Violence

Acts of aggression or harm that have no moral or legal grounds to support them.

Aggressively

In a manner that involves forceful action or determined pursuit, often without regard for others.

Modeling

A method of learning that involves observing and imitating the behavior of others.

Immediate Reinforcement

The delivery of a reward or punishment immediately after a behavior, which strengthens or weakens that behavior's likelihood of recurring.