In a Liquidation,one Partner May Have to Make Up the Deficit

question 97

True/False

In a liquidation,one partner may have to make up the deficit in another partner's account.

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Definitions:

Services Provided

Work performed by one party for another without the supply of tangible goods. Examples include consulting, marketing, maintenance, and legal services.

Accounting Equation

The accounting equation is a fundamental principle of accounting representing the relationship between assets, liabilities, and owner's equity (Assets = Liabilities + Owner's Equity).

Received Cash

Funds that are taken in by the company, often from transactions such as sales, loans, or investments.

Business Entity

An organization created by one or more individuals to engage in business activities, structured as corporations, partnerships, sole proprietorships, or other forms.