Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
THEORY PARTNERSHIP LIQUIDATION – ROAD TO MAAM OLI BABIES
Number 1 and 2
Which statement below is false concerning liquidation of a partnership?
a. All assets can be sold at fair value in a single transaction to a competitor or to others who wish
to continue the business.
b. Assets can be sold at distress prices in a single transaction to an interested party.
c. Assets can be sold piecemeal over an extended period of time to interested parties.
d. Assets must be liquidated solely through sale transactions.
Ans: B
Related Discussion: Causes of Liquidation
Which of the following is not a responsibility of an accountant during a partnership
liquidation?
a. To protect the creditors
b. To manage the liquidation process in a manner that results in the greatest amount of cash
collected
c. To distribute the most cash to the partner with the greatest capital account
d. To ensure that partner distributions do not jeopardize payments to creditors
Ans: D
Related Discussion:
Number 3
Which of the following is not a part of the partnership liquidation process?
a. Allocation of any remaining profit or loss to partners' capital accounts
b. Liquidation of noncash assets
