7. The rule indicating of ing priority of partner's loan over partner's capital is called a. right to collect. b. right of offset. c. creditor's right. d. partner's legal right. partnersher is personally insolvent and has a debit balance i partnership creditors second, and to the other partners last. and to the personal creditors second. When a partner is personally insolvent and has a her 8. distributership capital account, the personal assets should be a. to the as follows personal creditors in full payment of their claims first, to the .proportionally to the personal and partnership creditors. c. to the partnership creditors first to the extent of the debit balance d. proportionally to the personal creditors and the other partners with credit balances. 9. If all the liabilities have been recorded and no additional expenses are expected, the maximum loss a partnership canr a. fair market value of the noncash assets. b. book value of the noncash assets. c. book value of the noncash assets plus the recorded liabilities. d. fair market value or the book value of the noncash assets, whichever ealize is the is larger 10. Statement 1: The cash priority program allows the priority of cash distribution to the partner who has the least absorption capacity Statement 2: There is always loss on realization when noncash assets are converted into cash during liquidation process. a. Only statement 1 is correct. b. Only statement 2 is correct.. c. Both statements are correct. d. Both statements are incorrect