In calculating safe payment to partners, we should assume that:

a. Partnership liabilities will not be paid

b. No more liquidation expenses will be paid

c. All non-cash assets are worthless

d. None of the above

In the preparation of a schedule of safe payments, cash withheld for future liquidation expenses, and unrecorded liabilities that may be discovered is treated as:

a. Operating expenses

b. Other Expense

c. Loss on realization

d. Possible loss

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.

Lump-sum liquidation can be best described as a scenario where

a. assets are sold in one event only

b. liabilities are paid in one event only

c. cash available to partners is distributed to them at once

d. assets are sold at once and all the available cash is distributed to creditors and partners in one transaction