When a Partnership Is Liquidated on a Piecemeal Basis and Cash

question 39

Multiple Choice

When a partnership is liquidated on a piecemeal basis and cash has been distributed properly to all partners as noncash assets have been turned into cash,all future cash distributions should be made:
I.In the profit and loss ratio.
II.According to the balances in the partners' capital accounts.

• A)I only
• B)II only
• C)Both I and II
• D)Neither I nor II

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Definitions:

Muscle Control

The ability to direct and coordinate muscle movement in the body.

Stimulus Motive

An intrinsic desire to explore and interact with the environment, driven by external stimuli.

Primary Drive

A basic, innate urge or motivation, such as hunger or thirst, that prompts an organism to take action to satisfy its needs.

Secondary Drive

A learned association that becomes as motivating as primary biological drives through conditioning, such as the desire for money because it buys food.