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When a partnership is liquidated, which of the following statements is FALSE? Non-cash assets are converted to cash. ) Any liquidation gain or loss is allocated to the partners' capital accounts using the income and loss sharing ratio. Liabilities are paid or settled. Any remaining cash is distributed using the partners' income and loss sharing ratio. Any remaining cash is distributed based on the partners' capital account balances.

When a partnership is liquidated, which of the following statements is FALSE? Non-cash assets are converted to cash. ) Any liquidation gain or loss is allocated to the partners' capital accounts using the income and loss sharing ratio. Liabilities are paid or settled. Any remaining cash is distributed using the partners' income and loss sharing ratio. Any remaining cash is distributed based on the partners' capital account balances.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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When a partnership is liquidated, which of the following statements is FALSE? Non-cash assets are converted to cash. OAny liquidation gain or loss is allocated to the partners' capital accounts using the income and loss sharing ratio. O Liabilities are paid or settled. OAny remaining cash is distributed using the partners' income and loss sharing ratio. Any remaining cash is distributed based on the partners' capital account balances.
Transcribed Image Text:When a partnership is liquidated, which of the following statements is FALSE? Non-cash assets are converted to cash. OAny liquidation gain or loss is allocated to the partners' capital accounts using the income and loss sharing ratio. O Liabilities are paid or settled. OAny remaining cash is distributed using the partners' income and loss sharing ratio. Any remaining cash is distributed based on the partners' capital account balances.
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