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:

Hierarchy Of Needs

A theory proposed by Abraham Maslow that ranks human needs in a hierarchy, suggesting that individuals are motivated to fulfill basic needs before moving on to higher-level needs.

Belongingness

The human emotional need to be an accepted member of a group, whether it is family, friends, or co-workers.

Esteem Needs

Maslow's hierarchy of needs level, where individuals seek respect, self-esteem, recognition, and success to feel valued and fulfilled.

Deficiency Motive

A motivation that arises from the lack or deficit of some need or desire, driving behavior to fulfill that need.