When a partnership is liquidated, the assets are sold and the cash realized is applied first to the:

A) claims of creditors.
B) partner with the largest investment.
C) partners' equity accounts.
D) partners according to their ownership interests.

Liquidated

The process of converting assets into cash or cash equivalents by selling them in order to pay off debts or obligations.

Claims of Creditors

Rights to payment or other financial assets held by creditors of a business, typically arising from loans or credit extended to the business.

Assets Sold

This refers to items of value owned by a company that have been sold off, including property, equipment, or other resources.