21. Trin, Gea, and Brom are in a partnership. Brom decided that he wants to withdraw from the partnership by selling his interest to Ethel. Trin and Gea agreed to such. Trin's Capital account and Gea's Capital account

a. will not be affected when Ethel is admitted.

b. will surely decrease.

c. will surely increase.

d. all of the above

22. Liquidation differs from dissolution in that in liquidation

a. the business will no longer continues

b. assets will be revalued.

c. gains and losses are distributed according to the partnership agreements

d. There are no differences between the two

23. If cash payments to partners during liquidation are delayed until all non-cash assets have been sold, any cash remaining after all the partnership creditors have been paid is distributed

a. According to the liquidator's choice

b. In the profit or loss ratio

c. In the amount equal to the partner's remaining interest

d. Any of the above

24. What is the largest estimated possible loss that could arise in a safe payment schedule?

a. Book value of recorded assets

b. Book value of recorded non cash assets

c. Fair value of recorded assets

d. Any of the above

25. In liquidation, the liabilities of the partnership should be paid

a. after revaluation of assets.

b. before any sale of assets.

c. before the distribution of cash to partners.

d. none of the above.

26. In preparing the cash priority program, the maximum loss absorption can be derived by

a. Multiplying the total interest of the partner in the partnership by his profit and loss percentage

b. Multiplying the capital balance of the partner by his profit and loss percentage

c. Dividing the total interest of the partner in the partnership by his profit and loss percentage

d. Dividing the capital balance of the partner by his profit and loss percentage

27. Which of the following will not lead to dissolution?

a. Insanity of a partner

b. Capital deficiency of a partner

c. Bankruptcy of a partner

d. Admission of a new partner

28. The cash available for distribution to partners in an installment liquidation could be equal to the

a. Cash available after realization of non-cash asset is made

b. Cash available after payment to creditors were made

c. Cash available after payment to creditors were made and after setting aside an amount for possible liquidation expenses.

d. All of the above

29. Which would lead to a legal dissolution of a partnership?

a. Demise of a partner

b. Withdrawal of a partner

c. Admission of a partner

d. All of the above

30. The partner who should first receive cash under an installment distribution plan is the partner who

a. Can absorb the largest possible loss

b. Has the biggest capital balance

c. Has the smallest profit and loss percentage

d. Has the biggest profit and loss share