Asked by Taran Thiara on Jul 28, 2024
Verified
Which of the following is an incorrect step in the process of partnership liquidation?
A) Pay any liabilities
B) Sell the assets
C) Allocate gains and losses to partners
D) None of the above
Partnership Liquidation
The process of closing down a partnership by selling off assets, paying liabilities, and distributing the remaining assets to the partners.
Incorrect Step
A step in a process or procedure that has been performed wrongly, often leading to errors or undesired outcomes.
- Digest the steps and financial documentation involved in liquidating a partnership, concentrating on asset disposal and fulfilling financial obligations.
Verified Answer
SP
Shilvi PatelAug 01, 2024
Final Answer :
D
Explanation :
All the options listed (A, B, C) are correct steps in the process of partnership liquidation, making D the correct choice as it states that none of the steps mentioned are incorrect.
Learning Objectives
- Digest the steps and financial documentation involved in liquidating a partnership, concentrating on asset disposal and fulfilling financial obligations.
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