1. The selling of non-cash assets for cash in partnership liquidation, any difference between book value and the cash proceeds is called

a. gain or loss on realization

b. capital gain or loss

c. sales differential value

d. net profit or loss on sale

2. Distribution of remaining cash go the partners in lump sum liquidation is based on

a. partner's capital ratio

b. profit and loss ratio

c. equally

d. ending capital balances

3. In a partnership installment liquidation, the partners may receive partial returns of their capital when

a. all the non-cash assets have been realized

b. there is no deficit in the capital accounts of the partners

c. there is an available cash for distribution of partners

d. the partners agreed for the partial return of capital

4. A partner whose personal assets are more than his personal liabilities is called

a. insolvent partner

b. solvent partner

c. limited partner

d. dificient partner

5. The excess of the partner's share of losses over his capital credit balance is called

a. capital debit

b. capital deficiency

c. capital overdraft

d. capital losses

6. It is the legal right to apply all or part of a partern's loan to the partnership against his capital deficiency

a. right to claim

b. right on capital deficiency

c. right of offset

d. right to application to partner's interest