Asked by WillIam Cunkle on Jul 26, 2024
Verified
The last step in a partnership liquidation is to apply cash to creditor claims.
Partnership Liquidation
The process of ending a partnership by selling off assets, paying off liabilities, and distributing the remaining assets to partners.
Creditor Claims
Rights of creditors to the assets of a debtor in the case of default, bankruptcy, or liquidation.
- Perceive the strategic process and accounting registers essential for the closure of a partnership, including the process of asset liquidation and liability clearance.
Verified Answer
SD
Shaina Dela CernaJul 31, 2024
Final Answer :
False
Explanation :
The last step in a partnership liquidation is to distribute the remaining cash to the partners according to their capital account balances after all assets have been sold, liabilities paid, and creditor claims settled.
Learning Objectives
- Perceive the strategic process and accounting registers essential for the closure of a partnership, including the process of asset liquidation and liability clearance.
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