14. In installment liquidation, each cash installment is distributed:

a. In the partner's profit and loss ratio

b. In the ratio of partner's capital account balances

c. As agreed to by the partners

d. As if no more cash would be collected anymore

15. What should happen when a partner's capital account balance drops below zero during partnership liquidation?

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

b. The partner with the highest capital balance should contribute sufficient assets to eliminate the deficit

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

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

16. When Janang retired from the partnership, the final settlement of her interest exceeded her capital balance, under the bonus method, the excess is

a. Recorded as an impairment of asset

b. Recorded as an expense

c. Does not affect the capital balance of the partners

d. Deducted from the capital balances of the other partners

17. Which of the following will not lead to a dissolution of a partnership?

a. Death of a partner

b. Withdrawal of a partner

c. Admission of a new partner

d. Auction sale of some of its assets

18. The admission of a new partner

a. does not have an effect on the capital balances of the original partners

b. will decrease the capital balances of the original partners.

c. will increase the capital balances of the original partners,

d. Any of the above