During a liquidation, if a partners capital account balance drops below zero, what should happen? a. The

Question:

During a liquidation, if a partner’s capital account balance drops below zero, what should happen?

a. The other partners file a legal suit against the partner with the deficit balance.

b. The partner with the highest capital balance contributes sufficient assets to eliminate the deficit. LO6

c. The deficit balance is removed from the accounting records with only the remaining partners sharing in future gains and losses.

d. The partner with a deficit contributes enough assets to offset the deficit balance.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Advanced Accounting

ISBN: 9780073379456

9th Edition

Authors: Joe Ben Hoyle, Timothy S. Doupnik, Thomas F. Schaefer, Oe Ben Hoyle

See More Books

Question Posted: Jul 23, 2024 08:00 AM

See More Questions

A 0.500-kg block, attached to a spring with length 0.60 m and force constant 40.0 N/m, is at rest with the back of the block at point A on a frictionless, horizontal air table (Fig. 7.44). The mass...
Cibo Leathers manufactures a line of designer purses and handbags, some selling for as much as $ 1,000 per bag. One particular style requires a hand- stitched shoulder strap of cow leather that has...
In evaluating regression models, we have tested a hypothesis to determine whether the slope term is significantly different from zero. Why do we test this hypothesis? Why do we not test the...
1. Explain with example the compounding technique and the discounting technique in relation to time value of money.
Using the following revenue journal for Gamma Services Inc., identify each of the posting references, indicated by a letter, as representing (1) Posting to general ledger accounts or (2) Posting to...
Project L requires an initial outlay at t = 0 of $65,000, its expected cash inflows are $14,000 per year for 9 years, and its WACC is 10%. What is the project's MIRR? Do not round intermediate...
Which of the following statements is true concerning the accounting for a partnership going through liquidation? a. Gains and losses are reported directly as increases and decreases in the...
What is the marshaling of assets? a. A list of all partnership assets prepared when a formal accounting is to be made. b. A ranking of claims to be paid when a partner has become insolvent. LO6 c....
True or false: The mean of a normal distribution has no effect on its shape. Explain your answer.
Do you support the policy of not allowing some Chinese nationals to attend graduate school in the United States because of national security concerns?
Using your product or service name or category, do a search using the following phrase: Find a (insert the name of your product or service here...) near me. For instance, using my Mobile Notary...
Why do you think it is important to consider only relevant costs when conducting a differential analysis for a major purchase? Why not consider all possible costs in your decision? provide specific...
How do power dynamics and influence tactics shape decision-making processes and organizational politics within hierarchical structures ?
How do I answer these given the information below? Loan Amount? Loan to Value? Loan to Cost? Payment amount? Loan Balance at Maturity? Given Information: Property Cost: $1,000,000 Bank Policy on LTV:...
End A of the bar AB in Fig. 11.39 rests on a frictionless horizontal surface, and end B is hinged. A horizontal force F of magnitude 120 N is exerted on end A. You can ignore the weight of the bar....
A copper sphere of 10-mm diameter, initially at a prescribed elevated temperature T;, is quenched in a saturated (1 atm) water bath. Using the lumped capacitance method, estimate the time for the...
Which of the following factors can increase human risk for error?Predisposing mental and physiological states (e.g., fatigue, stress, dehydration, hunger, and boredom)Factors that directly enable...
When attempting to decrease the risk of error, its important to use human factors principles because:If you understand the factors that cause people to make mistakes, you can hire safer providers.If...
At the end of a double shift, an experienced nurse with an excellent track record gives a medication to the wrong patient. Based on human factors principles, what would you recommend as the best way...

During a liquidation, if a partners capital account balance drops below zero, what should happen? a. The

Question:

Step by Step Answer:

Advanced Accounting

Students also viewed these Business questions