If the Share of Losses on Realization of the Sale

question 199

True/False

If the share of losses on realization of the sale of noncash assets exceed the balance in a partner's capital account, the resulting balance is called a deficiency.

---

Definitions:

Canadian GAAP

Generally Accepted Accounting Principles in Canada, a set of accounting standards for financial reporting by Canadian companies.

Fair Value Accounting

An accounting approach where companies measure and report the value of certain assets and liabilities on the basis of their actual or estimated fair market price.

Net Working Capital

The distinction between the immediate resources and obligations of a company, highlighting its financial condition for the short run.