If the share of losses on realization of the sale of noncash assets exceed the balance in a partner's capital account, the resulting balance is called a deficiency. Group of answer choices True False

Assess the truth of this statement: One of the rules of debits and credits and account balances for a partnership is that increases in expense accounts are always debited to the expense account. This statement is true. O This statement is false. O There is not enough information to determine whether or not this statement is true. O This statement is not applicable to accounting concepts.

This answer is wrong . please give me the right answer.

Accounting type Question: As per the decision in the Garner vs Murray case, when the partner's capital accounts are fixed, any loss arising due to the capital deficiency in the insolvent partner's capital account is to be borne by solvent partners in the ratio of ..... A. profit sharing ratio B. last agreed capital ratio C. sacrificing ratio D. gaining ratio

3. When there is a capital deficiency, the effect is thata. the partners' equity will increase.b. the cash and other assets will also be deficientc. the liabilities and the partners equity will also decreased. there is no effect on the assets and liabilities.

Statement 1: In corporate liquidation, the recovery percentage of unsecured creditors without priority is computed by dividing the free assets with the claims of unsecured creditors without priority. Statement 2: Deficit refers to stockholder’s equity with negative or debit balance. a. True, True b. False, True c. False, False d. True, False Under the cash priority program prepared by partnership ABCD, the vulnerability ranks indicate the vulnerability of Partners A, B, C and D as follows (1 being the most vulnerable):A - 1B - 3C - 4D - 2If cash becomes available for distribution to the partners and it is only sufficient to pay one of the partners, who among them should receive the first distribution? a. D b. B c. A d. C

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Assess the truth of this statement: The normal balance of a partner's capital account is a credit balance. Group of answer choices This statement is true. This statement is false. There is not enough information to determine whether or not this statement is true. This statement is not applicable to accounting concepts.

If an existing partner withdraws from a partnership which is true a. his or her interest may be sold to the partnership or an individual partner. b. the consideration received for that partner's interest may suggest the existence of undervalued existing assets and/or goodwill. c. either the bonus or the goodwill method may be used to record the transaction if the partnership acquires the withdrawing partner's interest. d. all of the above

When there is a capital deficiency, the effect is that O The cash and other assets will also be deficient O The partners' equity will increase The liabilities and the partners' equity will also decrease O There is no effect on the assets and liabilities