1 - In liquidation, the partnership continues to operate as a going concern.

2 - The final payments to the partners are based on the debit balance of their capital balances.

1 is True and 2 is False

1 is False and 2 is True

Both are True

Both are False

1 - Personal creditors of the partner have the priority over the assets of the partnership.

2 - The entry to record the exercise of offset will debit to partner's capital account and credit partner's loan account.

1 is True and 2 is False

1 is False and 2 is True

Both are True

Both are False

1 - Gain and losses on the sale of assets in liquidation are always divided equally among partners.

2 -Restricted interest represents the portion of a partner's interest which should remain available to offset future deficiencies.

1 is True and 2 is False

1 is False and 2 is True

Both are True

Both are False

1 - Dissolution is the process of converting all assets of the business into cash.

2 - Partnership's assets are first applied for paying the debts of the managing partner.

1 is True and 2 is False

1 is False and 2 is True

Both are True

Both are False

1 - A partnership is always liquidated when its term is terminated.

2 - A partner's interest can be obtained by simply adding the partner's capital account and loan account.

1 is True and 2 is False

1 is False and 2 is True

Both are True

Both are False

1 - When cash is insufficient to fully satisfy the cash requirements in a particular priority, then the available cash will be distributed using the profit and loss ratio.

2 - The cash priority program will allow premature cash distribution without risk of overpayment to the partner.

1 is True and 2 is False

1 is False and 2 is True

Both are True

Both are False

1 - Liquidation is synonymous with "winding up of business activities".

2 - The cash settlement of all liabilities is referred to as realization.

1 is True and 2 is False

1 is False and 2 is True

Both are True

Both are False