90.2K

Verified Solution

Link Copied!

Question 5 Not yet answered Marked out of 1.00 P Flag question Recording profit and loss Which of the following is true with respect to the recognition of partnership profit or loss? Select one: O a. Salary paid to a partner is not treated as an expense O b. The net of revenues less expenses is always allocated to the partners in proportion to their relative Partner Capital accounts o c. Withdrawals of capital from the partnership are treated as expenses O d. Capital contributions are treated as income to the partnership Partnership dissolution Which of the following is not true with respect to the dissolution of a partnership? Select one: O a. The assets of the partnership must be converted to cash used to pay the obligations to creditors, including partners who are creditors, and any remaining cash must be distributed to the partners for the remaining amount reported in their capital accounts. O b. If a partner's Capital Account becomes negative as a result of the sales of assets, the partner is relieved of all liability with respect to the partnership O c. If a partner's Capital Account becomes negative as a result of the sales of assets, the partner must make a cash contribution to the partnership in an amount sufficient to bring the Capital Account to a zero balance O d. Profits (losses) that result from the liquidation of the partnership assets must be credited (charged) to the partners' Capital Accounts

Answer & Explanation Solved by verified expert

See Answer