Which One of the Following Statements Is Correct

question 36

Multiple Choice

Which one of the following statements is correct?

• A) If a partner of a liquidating partnership is unable to pay a capital account deficit, the deficit is absorbed by the other partners in the profit and loss ratio of those partners.
• B) Gains and losses from the sale of noncash assets are divided in the ratio of the partners' capital account balances if there is no income-sharing plan in the partnership contract.
• C) A loan receivable from a partner is added to the partner's capital account balance in the preparation of a cash distribution plan.
• D) Partners may not receive any cash before partnership creditors receive cash when liquidating a partnership.
• E) All cash payments to partners are made using their profit and loss ratio when liquidating the partnership.

---

Definitions:

Equilibrium Price

The market price at which the quantity of a good supplied equals the quantity demanded.

Demand And Supply Diagram

A graphical representation used in economics to show the relationship between the price of a good and the quantity demanded and supplied at that price.

Health Care Consumed

The total amount of health services and goods utilized by individuals or a population.

Copayment

The percentage of (say, health care) costs that an insured individual pays while the insurer pays the remainder.