In installment liquidation, each cash installment is distributed:

a. In the partner's profit and loss ratio

b. In the ratio of partner's capital account balances

c. As agreed to by the partners

d. As if no more cash would be collected anymore

In an installment liquidation plan, how is the amount of a cash distribution determined?*

a. By multiplying a partner's P & L ratio by his capital before the liquidation

b. By subtracting a partner's loss absorption potential from the loss absorption potential of the next strongest partner

c. By subtracting a partner's loss absorption potential from the loss absorption potential of the next strongest partner and dividing this difference by his profit and loss ratio

d. By multiplying a partner's profit and loss ratio by the difference between his loss absorption potential and the loss absorption potential of the next strongest partners.

How is a partner's loss absorption potential computed?*

a. Multiply her pre-liquidation capital balance by her P & L ratio

b. Multiply her pre-liquidation capital balance by her fractional share of profits and losses

c. Divide her pre-liquidation capital balances by her P & L ratio

d. Divide her P & L ratio by her pre- liquidation capital balances

In preparing a cash distribution plan, loss absorption of every partner is computed by:

a. Dividing each partners' capital balance by the percentage of that partners' capital balance in relation to the total capital of the partners.

b. Multiplying each partners' capital balance by the percentage of that partner's capital

balance in relation to the total partnership capital

c. Dividing the total of each partners' capital interest by the partner's profit and loss ratio

d. None of the above

In the installment liquidation of a partnership, the P & L ratio can now be used for cash payments to partners:

a. Anytime

b. Throughout the liquidation process

c. Once the partners capital balances are in proportion to the profit and loss ratio

d. None of the above