Question: Match the terms on the left with the descriptions on

Match the terms on the left with the descriptions on the right. Each description may be used only once (or not at all).
1. Dissolution
2. Partner's loss absorption potential
3. Liquidation
4. Statement of partnership realization and liquidation
5. Installment liquidation
6. Cash distribution plan
7. Incorporation of a partnership
8. Partner's deficit in capital
9. Lump-sum liquidation
10. Safe payments to Partners

Descriptions of Terms
A. Sale of partnership assets, payment of its creditors, and distribution of any remaining assets to partners.
B. Allocation to other partners in their profit and loss-sharing ratio if the partner is personally insolvent.
C. Schedule that shows how cash is to be distributed as it becomes available during liquidation process.
D. Amount computed by dividing a partner's capital balance by that partner's loss-sharing ratio.
E.Revaluation of a partnership's assets and liabilities to their market values.
F. Change in the legal relationship between partners.
G. End of the normal business function of the partnership.
H. Liquidation in which all assets are converted into cash over a short time period, enabling all creditors to be paid, with any remaining cash being distributed according to the partner's capital balance.
I. Cash payments to partners computed on the assumption that all noncash assets will be sold for nothing.
J. Presentation, in worksheet form, of the effects of the liquidation process on the balance sheet accounts of the partnership.
K. Liquidation in which cash is periodically distributed to partners during the liquidation process.

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  • CreatedMay 23, 2014
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