Question $5$

Partner A has a smaller capital balance than Partner L$.$ Partner A however, has a higher profit$-$and$-$loss$-$sharing percentage than Partner L$.$ The LA partnership has decided to liquidate. As a result of the information given,

Partner L$.$ will have a smaller loss absorption potential than A$.$

Partner L$.$ will receive cash only after A has received cash.

Partner A will have a smaller loss absorption potential than $L.$

Partner A will never receive any cash from partnership liquidation.

Question $6$

Which of the following statements is $($are$)$ true?