II - True or False Instruction: Write "T" if the statement is correct and "r " if in_o re :t. 1. Liquidation refers to payment of a! partn. rip's obligations during the process of dissolution. When non-cash sset are sold Is than the book . alue. the sale results to a gain on realization. During the li uidation process, the partnership will focus on terminal activities. 4 . Exempie of terminal activities are the sale of non cash assets, payment of partnership's creditors and distribution of excess cash to partners. 5. Right offset is an established legal doctrine that a deficient partner can exercise to partly or fully apply his loan account to the partnership against his capital eficiency in the process of liqui ation. 6. Theoretical loss refers to the balance of non cash assets that ./ere not sold during the liquidation process. 7 . The first step of the liquidation process is the sale of the non cash assets and distribution of realization gain or loss 8. Any partner who may develop a debit balance in his capital account may exercise the right offset. 9. In every partnership liquidation, a general partner's separate/personal asset can be subjected to claims from creditors after the partnership assets are exhausted. 10. When non-assets are sold more than a book value the sale results to a loss on realization