What accounting transactions are not recorded by an accountant during partnership liquidation?
A) The conversion of partnership assets into cash.
B) The allocation of gains and losses from sales of assets.
C) The payment of liabilities and expenses.
D) The initiation of legal action by creditors of the partnership.
E) Write-off of remaining unpaid debts.

Question

Quizplus · Accepted Answer

The initiation of legal action by creditors is not an accounting transaction; it is a legal process. Accountants record financial transactions, not legal actions.

What Accounting Transactions Are Not Recorded by an Accountant During