If a Partner with a Debit Capital Balance During Liquidation

question 31

Multiple Choice

If a partner with a debit capital balance during liquidation is personally solvent, the:

• A) partner must invest additional assets in the partnership.
• B) partner's debit balance will be allocated to the other partners.
• C) other partners will give the partner enough cash to absorb the debit balance.
• D) partnership will loan the partner enough cash to absorb the debit balance.

---

Definitions:

Frequency Distribution

A summary of how often each different value occurs in a dataset, typically represented in a table or graph.

Pie Graph

A type of graph in which a circle is divided into sectors that each represent a proportion of the whole.

Frequency Distribution

A statistical tool showing how the numbers are distributed across various values in a dataset.

Sample

A subset of a larger population selected for measurement, observation, or questioning to provide statistical information about the whole.