QUESTION 27 Which of the following is TRUE of a liquidation of a partnership? The remaining cash after paying all liabilities are paid to the partners based on their profit-and-loss-sharing agreement. It allocates the gain or loss on sale of assets to the partners capital accounts based on the profit-and-loss-sharing ratio. Dit involves the selling of short-term liquid assets and does not involve the sale of fixed assets. Before a business is liquidated, its books should not be adjusted or closed