Question
Which of the following does not accurately describe the process relating to the dissolution of a partnership? A. If a partner fails to contribute the
Which of the following does not accurately describe the process relating to the dissolution of a partnership? A. If a partner fails to contribute the full amount required, all of the other partners shall contribute (in their profit-sharing ratios) the additional amount necessary to satisfy the partnership obligations. In the event of such contribution, the partners shall have the right to sue the partner with the unfunded negative Capital Account for the amount owed to the partnership B. The assets of the partnership must be converted to cash used to pay the obligations to creditors, including partners who are creditors, and any remaining cash must be distributed to the partners in accordance with the relative proportions of their Capital Accounts. C. Profits (losses) that result from the liquidation of the partnership assets must be credited (charged) to the partners' Capital Accounts. D. If a partner's Capital Account becomes negative as a result of the sales of assets, the partner must make a cash contribution to the partnership in an amount sufficient to bring the Capital Account to a zero balance.
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