Answer the following statements true (T) or false (F)
1. The process of going out of business by selling the entity's assets, paying its liabilities, and distributing any remaining cash to the partners based on their equity balances is known as liquidation.
2. While liquidating a partnership, the cash remaining after paying all liabilities is paid to the partners based on their profit-and-loss-sharing agreement.
3. Upon liquidation of a partnership, gains and losses on the sale of assets are divided according to the
partner's capital balances.
4. Upon liquidation of a partnership, the cash received from the sale of assets is first returned to the capital balances of the partners. The remaining cash is then used to pay off the liabilities of the business.
1. True
2. False
3. False
4. False
You might also like to view...
The auditor's report is generally addressed to the:
A. stockholders of the company. B. chief financial officer. C. securities and exchange commission. D. chief operating officer.
Which of the following is not an element of the financial statements?
A. Net income B. Assets C. Revenue D. Cash
When Costco sells to consumers directly, it acts as a ________; when it sells to other businesses, such as a restaurant owner, it acts as a ________.
A. manufacturer; wholesaler B. retailer; wholesaler C. wholesaler; retailer D. retailer; manufacturer E. marketing channel; supply channel
Answer the following statement(s) true (T) or false (F)
1. In portfolio models, risk is minimized by diversification. 2. Revenue management methodology can be applied in the case of nonperishable assets. 3. In a data envelopment model, dual prices inform reservation agents of the revenue loss associated with overbooking each origin-destination-itinerary fare (ODIF). 4. In game theory, the player seeking to maximize the value of the game selects a maximax strategy. 5. The analysis of a two-person, zero-sum game begins with checking to see whether a pure strategy exists.