An entry is not required in the liquidation of a partnership to record the

A) payment of cash to creditors.
B) distribution of cash to the partners.
C) sale of noncash assets.
D) allocation of a capital deficiency to partners with credit balances when the deficient partner is expected to pay the deficiency.

Liquidation

The process of winding up a company's affairs by selling its assets to pay off its debts.

Capital Deficiency

A situation where a company's liabilities exceed its assets, indicating potential insolvency or a need for additional funding.

Credit Balances

Balances in financial accounts that signify amounts owed to others, which are common in liability accounts, equity accounts, and revenue accounts.