Write TRUE, if the statement is amrat or FALSE, if the statement is incorrect. 1. Lump sum liquidation method requires that all assets are converted into cash, all liabilities are paid, and all profits and losses are charged to the partners, followed by a single distribution of cash. 2. The process of removing the debit balance of a partner through his existing loan account is called exercising the right of off set. 3. Dissolution always results to liquidation. 4. In liquidation, cash should be distributed first to outside creditors. 5. Gain or loss on realization is divided among the partners according to their capital contributions. 6. The loss absorption potential is the maximum loss each partner can absorb and which can eliminate him from any cash distribution. 7. In the partnership liquidation statement, assets are generally classified as cash and non-cash assets. 8. Loss on realization and liquidation expense are allocated based on the profit and loss ratio and will decrease the partners' capital accounts. 9. Under lump sum liquidation, the final cash distribution is made on the basis of the partners' profit and loss sharing agreement. 10. Payment of liabilities would not affect the capital balances of le partners.