The cash available for distribution to partners in an installment liquidation could be equal to the*

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a. Cash available after realization of non-cash asset is made

b. Cash available after payment to creditors were made

c. Cash available after payment to creditors were made and after setting aside an amount for possible liquidation expenses.

d. All of the above

The proper order of priority in a partnership liquidation is as follows:*

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a. Outside creditors, partners for capital accounts and partners for loan accounts

b. Partners for capital accounts, partners for loan accounts, and outside creditors

c. Partners for loan account, partners for capital account and outside creditors

d. Outside creditors, loan payable to partner's, partner's capital credit balance

What is the largest estimated possible loss that could arise in a safe payment schedule?*

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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 preparing a cash distribution plan, loss absorption of every partner is computed by:*

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a. Dividing each partners' capital balance by the percentage of that partners' capital balance in relation to the total capital of the partners.

b. Multiplying each partners' capital balance by the percentage of that partner's capital

balance in relation to the total partnership capital

c. Dividing the total of each partners' capital interest by the partner's profit and loss ratio

d. None of the above

If a bonus is to be given to the existing partners, it is allocated among them according to the*

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a. Profit and loss ratio of the existing partnership

b. Profit and loss ratio of the new partnership

c. Capital ratio of existing partners

d. Capital ratio of all the partners, including the new partner

Upon dissolution, the partners may adjust the partnership assets and liabilities. The net effect of such restatement must be distributed to the partners based on their*

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a. ending capital balances

b. old profit and loss ratio

c. new profit and loss ratio

d. beginning capital balances

The partner who should first receive cash under an installment distribution plan is the partner who*

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a. Can absorb the largest possible loss

b. Has the biggest capital balance

c. Has the smallest profit and loss percentage

d. Has the biggest profit and loss share

Before dissolution takes effect, liabilities should be restated at their*

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a. fair market values

b. present values

c. liquidating values

d. historical values

Which among the following partners would get the first cash distribution?*

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a. The partner with the largest loan balance

b. The partner with the largest loss absorption potential

c. The partner with the largest capital balance

d. The partner with the largest profit and loss ratio

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

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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