The Abrams, Bartle, and Creighton Partnership Began the Process of Liquidation

question 31

Multiple Choice

The Abrams, Bartle, and Creighton partnership began the process of liquidation with the following balance sheet: $$\begin{array} { l l l r r } \text { Cash } & \$ 16,000 & & \text { Liabilities } & \$ 150,000 \\\text { Noncash assets } & 434,000 & & \text { Abrams, capital } & 80,000 \\& & & \text { Bartle, capital } & 90,000 \\& & & \text { Creighton, capital } & 130,000 \\\text { Total } & \underline { \$ 450,000 } & & \text { Total } & \$ 450,000 \\\hline \hline\end{array}$$
Abrams, Bartle, and Creighton share profits and losses in a ratio of 3:2:5. Liquidation expenses are expected to be $12,000.
The noncash assets were sold for $134,000. Which partner(s) would have had to contribute assets to the partnership to cover a deficit in his or her capital account?

• A) Abrams.
• B) Bartle.
• C) Creighton.
• D) Abrams and Creighton.
• E) Abrams and Bartle.

Identify the 5Ss and understand why the list sometimes extends to seven elements.

Recognize JIT policies for suppliers and the expectations from them.

Understand the implications of reducing lot size to one in JIT and lean production.

Understand the use of kanban signals within a production system.

---

Definitions:

Tangible Capital Assets

Physical assets owned by a firm that are used in its operations over several years, including buildings, machinery, vehicles, and equipment.

Government

The system or group of people governing an organized community, often a state, and the organization by which this group exercises authority and performs functions.

Unexpired Service Potential

the remaining usefulness or service capacity of an asset, usually in the context of public sector accounting.

CICA PSA Handbook

The Public Sector Accounting Handbook issued by the Canadian Institute of Chartered Accountants, providing guidelines for accounting practices in the public sector.