While Liquidating a Partnership,the Cash Remaining After Paying All Liabilities

question 85

True/False

While liquidating a partnership,the cash remaining after paying all liabilities is paid to the partners based on their profit-and-loss-sharing agreement.

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Definitions:

Beginning Balance

The amount of money in an account at the start of a new accounting period, carried over from the end of the previous period.

Ending Balance

The final amount in an account at the end of a reporting period after all debits and credits have been accounted for.

Minimum Legal Capital

The least amount of capital that must be raised through the issue of shares for a corporation to be legally established.

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuer.