In Winding Up a General Partnership, Creditors Are Paid Before

question 17

True/False

In winding up a general partnership, creditors are paid before partners receive their capital contributions.

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Definitions:

Payor Bank

The bank that dispenses the payment on a written draft or check upon presentation.

Drawee Bank

The financial institution upon which a check is drawn or which is directed to pay the specified amount.

Collecting Bank

A financial institution involved in processing items for payment, such as checks, on behalf of a depositor.

Collecting Bank

A bank that handles the processing of payments (like checks) on behalf of the payee or a client bank.