307 6-4 Multiple Cholce (Theory) tmctio Encircle the ltter that corresponds to the which of the following principle of equitable s to the best answer iven preferential con I b. Partners' capital d. Any of the above iquidation process? consideration? distribution of assets is Third party creditors Partners' receivable 2 Which of the following is least likely to describe a person to facilitate a. Liquidator b. Terminator c. Receiver When the partnership is incapable to pay its creditors. assets of the partners are used to satisfy the claims of the creditors. Which of the following creditors are given preference over the personal l assets of the partners? a. Partnership creditors b. Partners with legal claims in C. Personal creditors of partners d. Partners' capital 4. In the installment method of liquidation, the final cash distribution to partners is based on a. the partners' profit and loss distribution ratios I b. safe payment schedule. I c. cash priority program d. partners' capital balances. I 5. When advance cash distribution plan is prepared, a partner's loan payable to partnership is a. added to the other liabilities. b. added to the credit balance in the partner's capital account. . subtracted from the credit balance in the partner's capital account. omitted from the calculation. 6. In terms of entity definition, a partnership is insolvent only when d assets are insufficient to pay existing partnership a. its recorde iabilities