If a partner fails to invest additional assets to make up his deficit, how should the debit balance be handled by the partners?*

a. It should be written off as a regular bad debt expense

b. It should be allocated to all the partners in their profit and loss ratio

c. It should be distributed to the remaining partners in their remaining profit and loss ratio

d. None of the above

If a partner with a loan receivable from a partnership, receives cash during such liquidation, the payment is recorded with a debit in the partnership books to:*

a. Loan Receivable from Mr.- X

b. Mr. X, Capital

c. Mr. X, Drawing

d. Loan Payable to Mr. X

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

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

In a partnership liquidation

a. partners' loans are paid first before creditors.

b. creditors are paid first before partners' loans

c. partners' capital balances are paid first before partners' loans.

d. partners' capital balances are paid first before creditors

In a partnership liquidation,

a. creditors should be paid before the partners

b. gains and losses on the sale of assets are distributed to the partners on the ratio of their current capital balances,

c. the last entry credits the partners' Capital accounts.

d. all of the above